Right now, the dynamic property market in the Emirate is witnessing the emergence of new trends that are shaping its landscape. These trends encompass migration patterns, changes in buyer demographics, luxury property transformations, resale dynamics, stability in the mid-market, and the infusion of new technologies into the home services sector.
The trends anticipated to significantly influence the real estate market in 2024 offer valuable insights into its potential performance in the coming year. Here is an overview of these noteworthy trends:
Potential property owners are opting for the suburbs, such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan, seeking affordability and more spacious living. These suburban areas provide a cost-effective alternative to the central and prestigious neighborhoods.
Record-high rental rates in Dubai have led to a surge in first-time buyers, transitioning from renters to property owners. The demand is particularly notable for apartments and small townhouses in suburban locations.
Investors and property owners are choosing extensive renovations for their properties in prestigious areas before placing them on the market at higher prices.
The robust demand for real estate in Dubai has led sellers to mark up sale prices, resulting in a 15 percent gap between offered prices and actual transaction prices.
November marked the breaking of the 2014 average price per square meter record in Dubai, indicating market stabilization. For investors and property owners, it presents an opportune time to capitalize on capital gains.
However, for end-users, rising rents have fueled demand for properties in the AED 3 million ($820,000) range.
The year 2024 will witness a surge in new projects, providing property seekers with a broader range of choices. Approximately 67,000 new units are expected to be delivered, offering relief to the rental market.
Price regulation is impacting the mid-price segment market, with a concentration of projects in areas like JVC, Arjan, IMPZ, and Dubai Land. This is expected to stabilize the mid-range market, leading to a decline in rental prices.
As homeownership rises, trends such as short-term rentals and flexible living arrangements driven by lifestyle changes and technological advancements are gaining prominence. Technology facilitates a streamlined approach to property selection, occupancy management, and maintenance requests.
The real estate market underwent diversification in 2023, with an expansion of green areas, increased construction projects, and higher sales of completed properties. This trend is set to continue in 2024.
A stable increase in property prices ranging from 3.5% to 5% is predicted for Dubai in 2024, supported by population growth, a competitive economic environment, and government initiatives attracting global businesses.
In the era of technology, seamless customer service becomes integral to new property developments. The upcoming year will witness the integration of advanced technologies like 5G, artificial intelligence, and the Internet of Things (IoT) into modern residential complexes, offering users a variety of online platforms for real estate transactions.