More than 8,000 new properties hit the Dubai real estate market during the first quarter of 2024, a new report revealed.
According to Cushman & Wakefield Core’s Q1 market report for Dubai, more than 8,351 units were handed over during the first three months of 2024 which were “in line with market demand.”
An additional 29,690 units are expected to be handed over between Q2 and Q4, bringing the yearly forecast to nearly 38,000 units.
“While the upward trajectory continues across all performance indicators including rents, sales prices, and occupancy levels, we are starting to see the pace moderate in the residential market,” said Prathyusha Gurrapu, the company’s Head of Research and Consulting.
Expected surge in new real estate project launches Apartment project launches increased by 22 percent while villa launch volumes declined by 30 percent.
“Despite the sustained demand for villas, developers remain slower to respond to this surge, largely because of limited land acquisition opportunities,” Gurrapu added.
The overall supply of residential properties and expected delivery figures remain in line with forecasts, pointing to no major headwinds of oversupply in the near future, the company said in a statement on Tuesday.
However, it pointed out that a significant amount of project launches could impact the supply-demand equilibrium after two to four years when most projects are scheduled for delivery, provided they are delivered on time.
This comes on the heels of the Al Maktoum International Airport announcement which is expected to further boost Dubai South, Expo Village, Expo City Dubai, and the surrounding areas for residential, commercial, hospitality, and industrial asset-class projects in the near- to mid-term.
Off-plan, secondary real estate markets stabilising
Off-plan transaction activity continues to dominate with a 22% year-on-year increase as the secondary market stabilises at a 16% rise.
“It is interesting to note that while transaction volumes are up, the secondary market transaction volumes have stabilised over the last three quarters indicating sustained levels of end-user demand, whereas off-plan launch volumes have shown large variances based on prominent project launches – albeit with an overall upward trajectory,” Gurrapu added.
The city’s real estate market shattered previous records in Q1 with over 34,000 overall transactions, marking a 20% increase compared to the same period last year. It has gone down in history as the most active quarter on record for the emirate’s property sector.