Over 30,000 Residential Units to Be Delivered By 2024's End

Dubai's real estate performance for the year 2024 remains exceptionally satisfactory and is continuing its growth. The upward trajectory of Dubai real estate achieved in February 2023 showed a modest increase of 0.83% in the prices of property. Another reputed source highlighted that Dubai’s real-estate sector achieved great milestones and witnessed an upsurge. Homes for sale in Dubai contributed a lot and helped the real estate market of Dubai to maintain its momentum in 2024. Let’s investigate interesting news of over 30,000 residential homes to be delivered by the end of 2024.

Reasons for Delivering 30,000+ Residential Units to be Delivered in 2024

The overall performance of the residential property market in Dubai is showing a boom with no signs of slowing down. This blog investigates this trend and the major reasons that cause the delivery of residential units on such a massive scale.

Real Estate Market Overview 2024

Analysis of Dubai real estate showed that there is significant activity in Dubai real estate in Q1 2024.

Gulf News reported Dubai real estate started 2024 with excitement and observed the successful completion of approximately 10,000 units in Q1 only, which added the property to the staggering 729,000 units.

An additional 25,000 units are scheduled to be delivered by the end of the year in the prime locations of MBR and Business Bay leading the list.

According to the research director from a trustworthy real estate:

“However, escalating land prices and building costs are convincing developers to change their focus towards secondary sites in addition to directing properties within the Dhs2m price range, aiding buyers to meet the threshold for the Golden Visa eligibility”

Skyrocketing Dubai Rental

Dubai apartment rentals also saw a remarkable spike with 22% surpassing villa rentals which stuck at 14%. On the other hand, Price of the villas in Abu Dhabi increased by 9%.

Impact of Hospitality on Property Demand

The hospitality growth in the United Arab Emirates projected a positive impact on the demand for residential property units in Dubai. Due to this, luxury real estate investments increased and welcomed approximately 2,000 new hotels in Q1 2024.

Further, the Emirates is expecting another addition of 5,000 in locations like Business Bay.

From the trustable source, it has been highlighted that Dubai tourism has increased and is set at 18%. Also, tourism in Dubai sustained the 5% growth mark with an 8% increase in the average daily rate.

Landlords are focusing more on Long-term Occupancy

There is a limited delivery of the office market which is only offering around 17,000 sq. ft. Construction business News reported a further 38,000 sq.m of space is anticipated to be delivered.

The plans for the rest of the year will eventually reduce and alleviate the pressure from the supply in the long run. This plan is also supported by the expansion plan, commercial development, and the presence of the free zones.

Besides the plan for office space in Dubai, it is critical to manage the demand as the requirement for offices is constantly increasing. Many buyers want to buy property in Dubai but are facing the challenge of tenancy.

The corporate offices are unable to accommodate themselves in the meantime due to the limited availability of the property units.

Smaller Community Malls and Competition

The delivery of 30,000 residential units in Dubai is also exceptional and supports the development of a smaller community mall. This is because there is a limited availability of space in regional malls.

For the sake of competitiveness, Dubai owners are considering redevelopment of the existing mall, introducing innovative concepts and refurbishment.

Meeting the Demand for Residential Units

As the demand for residential units is increasing in Dubai developers are constantly focusing on delivering property units to meet that demand. Emaar's latest launches rest all-time high property prices in January 2024 with AED 1,284 sq. ft.

Emaar Properties reported significant transactions in the offline market with Dubai Hills outperforming.

According to the real estate expert

“Despite the converged focus on delivering new property units in the residential category and the influx of new supply, the capital appreciation is anticipated especially in villas and townhouses.”

Various payment plans and properties are being offered by the developers of Dubai including homes under 1Million AED to attract more buyers in need of residential units.

Conclusion

Dubai market is emerging as a successful player in the real estate industry with a continuous upsurge and increasing demand for the property. There are a couple of reasons why the demand is escalating including, Dubai being a tourism and secure hub for individuals, easy process of buying, less supply from the developers, and comparatively affordable prices with easy payment plans. All of these factors are driving Dubai real estate to become one of the key platforms through which Homes for sale in Dubai can be bought and buyers can experience unmatched and exclusive living.