Another record falls!
With over 34,000 transactions recorded at the DLD, Q1 2024 was officially the biggest quarter on record for the Dubai real estate market. With the removal of the UAE from the FTFA Grey List, the current bull market looks set to be with us for some time to come. Sales agreed at Betterhomes went up in March by 34% year on year, and those newly signed deals will be reflected in the next quarter's numbers, so we can expect the market to remain hot, despite the recent rains.
However, a lack of supply of ready homes is one of the key aspects impacting the market this year. While the population grew by 26,000 in the first three months of the year, we only saw approximately 6,500 new homes being handed over, continuing the pressure on rental stock which has resulted in rental prices increasing 22% year on year.
Sales volumes in the villa segment have been impacted by a lack of supply in the secondary market. Although secondary sales fell in Q1, they were more than made up for by the off-plan market, where we saw over one project launched every single day between January and March. Off-plan sales now equate to more than 58% of all sales recorded in the Emirate.
Looking ahead, as Dubai continues to grow and attract talent at its current rate, we can expect current price trends to persist throughout 2024 and into 2025. It won’t be until 2026 and into 2027 that we start to see the volume of supply entering the market that is required to start to take meaningful pressure off prices. Meanwhile, the much-anticipated fall in interest rates looks unlikely to transpire until later in the year as US employment numbers continue to outperform expectations, and US inflation remains stubbornly high.
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- Luxury Market
- Rental Market
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