Dubai has become a favorite destination for every Indian investor’s first real estate choice. Not only Indians, but investors across the globe are keen to invest in Dubai real estate. Why wouldn’t they? Dubai's skyline is soaring higher and higher day by day. 
Dubai's real estate market is experiencing an unprecedented boom, with projections indicating significant growth in the coming years. It is set to welcome a new wave of development in the next half of 2024. Today in our latest blog, we decode the Dubai real estate market boom. ‍

The New Development Wave‍

According to W Capital, a leading real estate brokerage firm in Dubai, the city is poised for a remarkable expansion, with over 30,000 new residential units expected to be delivered in the second half (H2) of 2024. This surge follows the delivery of more than 17,000 units in the first half (H1) of 2024, bringing the total for the year to approximately 48,000 units. This growth represents a substantial increase from previous years and signals a thriving market that shows no signs of slowing down. 
The report also suggests that this growth trend will continue, with hand-offs potentially exceeding 65,000 units in 2025 and reaching an astonishing 70,000 units by 2026. Such projections highlight the robust demand for residential properties in Dubai, driven by local and international buyers. 

‍The Price Factor

The rise of the Dubai real estate market is highly dominated by the surge in property prices. DHG Properties recently revealed that the growth rate of residential real estate prices increased from 20.30 percent in February 2024 to 20.70 percent in March 2024. This price appreciation underscores the strong demand and the limited supply of high-quality residential units. ‍

Massive Demand for Luxury Properties‍

Dubai's real estate market is not just growing in terms of volume but also value, particularly in the luxury segment. The city is witnessing a surge in demand for luxury properties, driven by an increasing number of high-net-worth individuals (HNWIs) seeking lucrative investment opportunities. The allure of Dubai's tax-friendly environment, world-class amenities, and strategic location make it an attractive destination for affluent investors from around the globe.

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Global Context

Dubai ranked first with the most homes sold over $10 million, outpacing New York, London, and Hong Kong. The market saw 28,249 deals in Q3 2023, a 23% increase from the same quarter in 2022. In 2022, Dubai led global cities in visitor spending, reaching $29.42 billion. This dynamic hub welcomes 15.95 million tourists annually, linking 2.5 billion consumers across the Middle East, the Indian Subcontinent, and East Africa. Dubai's market offers unique opportunities, particularly in the luxury segment, which continues to attract global investors. ‍

Future Outlook‍

The broader United Arab Emirates (UAE) real estate market is also on a growth trajectory, anticipated to reach a staggering value of US$0.68 trillion by the end of 2024. Within this market, the residential segment is projected to dominate, with a market volume of US$0.39 trillion. Looking ahead, a steady annual growth rate of 2.25% is expected from 2024 to 2029, culminating in a market volume of US$0.76 trillion by 2029.

With time, the Dubai real estate market will keep adapting to the latest technology, and the growth of the real estate ecosystem will be further boosted. For investors, developers, and residents, this expansion offers a chance to participate in one of the world's most dynamic markets. As Dubai remains at the forefront of the real estate market., its ambition to become a global hub for business and tourism is becoming a reality.

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