ValuStrat’s latest report: Dubai’s real estate market continues to grow

Driven by limited supply and rising demand. A six-year low in home completions and record population growth spur widespread sales and rental price increases

Dubai’s Q4 2024 Real Estate Market: Growth, Trends, and Insights

A newly released Dubai Q4 2024 real estate market report from ValuStrat, a leading global consultancy specializing in multi-sector advisory services, provides an in-depth analysis of market trends across residential, commercial, and hospitality sectors. The report highlights a strong-performing market with sustained growth and heightened activity.

Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, shared his expert insights into Dubai’s real estate performance.

According to Tuaima, initial projections indicate that only 58% of the expected residential supply was delivered, equating to around 27,000 completed homes in 2024, marking the lowest completion rate in six years. At the same time, Dubai’s population surged by over 170,000 residents, the highest annual increase since 2018. This supply-demand imbalance has contributed to a widespread rise in property prices and rental rates.

The ValuStrat Price Index (VPI) recorded annual capital value growth across multiple segments: apartments increased by 23.6%, villas by 31.6%, offices by 23.9%, and warehouses by 15%. Similarly, rental prices surged, with villas seeing a 5.8% rise, apartments 13%, and office spaces 22.5%.

However, the market also faced challenges, particularly a decline in residential and office transactions driven mainly by reduced off-plan sales. Despite this, the ready property market achieved record-breaking sales, reaching the highest number of transactions in a single quarter.

Dubai’s hospitality sector continued to perform strongly, boasting a total of 155,000 hotel rooms and achieving a 78% occupancy rate. Revenue per available room (RevPAR) also saw a 2.8% increase compared to the previous year.

Summarizing Dubai’s 2024 real estate market, Tuaima emphasized that strong population growth and robust ready sales counterbalanced the slowdown in off-plan transactions. The market remained resilient, with capital and rental values rising across all sectors, while the hospitality industry flourished, reaffirming Dubai’s position as a global investment hub.

For further insights into Dubai’s real estate trends and research reports, visit ValuStrat’s official insights page.

About ValuStrat

ValuStrat is a globally recognized consulting firm offering Advisory, Valuation, Research, Transaction Advisory, Due Diligence, and Industrial Consulting services across various industries. With over 45 years of expertise, a presence in 14 offices across 5 countries, and a diverse clientele of 1,000 corporations, ValuStrat supports businesses ranging from government bodies and multinational corporations to financial institutions, startups, and SMEs. It is also a preferred valuation service provider for over 120 financial institutions across the EMEA region.

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