Property prices in Dubai have continued to rise for the 15th consecutive quarter during the January-March 2024 period, with the increase mainly driven by affordable and mid-market communities. Analysts have identified Discovery Gardens, Sports City, and Dubailand as the areas with the highest increase in prices, as demand from residents and foreign investors remains strong. Villa owners are also renovating older units and reselling them at higher prices to meet the growing demand in the market.
According to Prathyusha Gurrapu, the director and head of research and consultancy at Cushman & Wakefield Core, the city-wide sales prices have increased by 20% year-on-year and are now 66% higher than the first quarter of 2020. The price rise for apartments is moderate in prime sub-markets such as Palm Jumeirah, City Walk, Downtown Dubai, and Dubai Marina, with sales price increases below 20% year-on-year. The property rallies that started after the Covid-19 pandemic in 2024 have continued, attracting a large number of investors due to the affordability of prices compared to other cities around the world.
As the price of rent continues to increase due to the influx of foreign workers into the country, tenants are gradually becoming property owners, especially in affordable and mid-market apartment communities. These communities have seen a sharper increase of 30% or more, with areas like Discovery Gardens, Dubai Sports City, and Dubailand experiencing significant price hikes. Haider Tuaima, the director and head of real estate research at ValuStrat, noted that capital values surged by 24.7% year-on-year in the first quarter, driven by mid-affordable communities like Discovery Gardens, The Greens, and Palm Jumeirah.
ValuStrat data shows that around 46,558 newly-built units are expected to enter the market in Dubai this year, with 5,770 apartments and 1,038 villas completed in the first quarter. Approximately 86,000 apartments are currently under construction, with promised handovers by 2028. Renovating older villas has also become a trend to sell at higher rates, as shown by data from Cushman & Wakefield Core, which indicates a significant increase in sale prices for villas in districts like Jumeirah Village Circle, The Lakes, and Jumeirah Park.
Gurrapu highlighted the surge in villa sales prices, especially in older areas like The Lakes and Jumeirah Park, due to the trend of renovating and reselling units at higher prices. This trend has elevated the average price in these areas, as they offer central locations with established schools and amenities. Tuaima added that villas have remained resilient, with a year-on-year increase of 29.6%, reaching a 10-year high in prime villa values. There are approximately 21,230 villas under construction in Dubai, set to be delivered by 2024, according to ValuStrat data.
