The Dubai property market is increasingly oriented towards mid-market and affordable housing, with nearly two in five ready-home sales valued below AED 1 million ($272,000), according to ValuStrat’s latest report.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, provides an in-depth analysis of Dubai’s residential, commercial, and hospitality sectors, showcasing a market marked by strong growth and high activity. He noted, “Dubai’s property market has shown extraordinary momentum in Q3 2024, fueled by record population growth and lower interest rates.”
Driven by surging demand, home sales and mortgage applications reached historic highs, while prices for office spaces and warehouses also hit new records. The ValuStrat Price Index (VPI) revealed a 28.9% annual rise in residential values. Freehold villa communities exceeded a decade-long price peak, with nearly all villas doubling in value since 2020.
This quarter, ready villa and townhouse prices rose 33.1%, while apartment prices increased by 24.8%, up from 23.4% last quarter. Apartment rentals outpaced villa rentals with a 15.4% annual rise, compared to a 4.9% increase for villas. Meanwhile, demand for office spaces remains strong, showing a 25.8% annual rise in capital values, with sales up 3.8% and rents climbing 20.8% on average. Logistical warehouse demand also rose, recording a 14.6% annual and 5.2% quarterly increase.
Dubai’s hotel market is booming, with total hotel keys now exceeding cities like London, Paris, and New York. Occupancy levels remain high year-round, supported by a steady influx of tourists and new businesses entering the region.
