Once again, Dubai's real estate market is in the spotlight, marking 15 consecutive quarters of price increases. This time, the main factors driving the price surge are the affordable mid-market communities, while villa owners play a crucial role in renovating old properties and reselling them at higher prices.
According to analysts, Dubai's property prices continued to rise in the first quarter of 2024, marking the 15th consecutive quarter of growth. This round of increases is primarily fueled by increased demand in affordable mid-market communities. Particularly, some communities such as Discovery Gardens, Sports City, and Dubai Parks and Resorts have seen the most significant price hikes.
To meet the growing demand, villa owners in Dubai have adopted a strategy of renovating old properties and reselling them at higher prices. This initiative not only provides more choices in the market but also injects fresh vitality into the real estate sector.
khaleejtimes.com
According to Prathyusha Gurrapu, Director and Head of Research & Advisory at Core Real Estate, Dubai's overall property sales prices have increased by 20% year-on-year, up 66% from the first quarter of 2020. However, in major sub-markets such as Jumeirah Palm Island, Downtown Dubai, and Dubai Marina, apartment price increases have slowed to below 20%.
The rebound in the property market began after the COVID-19 pandemic in 2019, with Dubai's property prices still relatively low, attracting significant investor attention. As the number of foreign workers increases and rents continue to rise, more and more tenants are transitioning to become homeowners.
According to ValuStrat data, there has been a more pronounced increase in prices in the affordable housing and mid-market apartment communities, with communities like Discovery Gardens, Dubai Sports City, and Dubai Parks and Resorts experiencing price increases of over 30%.
On the other hand, villa prices have also shown resilience, reaching an annual growth rate of 29.6%, the highest level in a decade. ValuStrat data shows that there are currently around 21,230 villas under construction in Dubai, expected to be delivered by 2024.
