Dubai’s property market is currently experiencing a boom, with demand for both off-plan and ready properties steadily increasing. While the off-plan segment continues to lead the market rally, the demand for ready properties remains strong, especially if they are priced correctly. The ready property market is facing a supply shortage as the city sees a rise in high net-worth individuals, millionaires, and residents looking for properties due to escalating rental prices.
Provident Estate noted that Dubai is gaining over 8,000 new residents per month, leading to a demand that surpasses the available supply in most projects. Ready properties that are priced right are selling within a maximum of four weeks of being listed on the market. Engel & Völkers Middle East reported a 13.2 percent increase in ready property transactions yearly, with prices going up by 14.57 percent in the first half of 2024 compared to the same period in the previous year.
The population of Dubai is steadily increasing, with plans to reach over 5.5 million residents by 2040. The majority of buyers in the ready property market are end-users or wealthy individuals relocating to Dubai, who are seeking properties for personal use. The World’s Wealthiest Cities Report 2024 highlighted that the number of individuals with liquid investment wealth of $1 million or more in Dubai had increased to 72,500, attracting high net-worth individuals and investors to the luxury real estate market.
The real estate market in Dubai has experienced continuous growth, with record sales across all sectors. Villa and townhouse prices have increased due to low supply, particularly in the luxury segment that continues to attract high net-worth individuals and investors looking for prime real estate opportunities. Dubai’s property market offers an average rental yield of 6-8 percent, significantly higher than cities like London, Hong Kong, and New York, with average property price appreciation of 18 percent in just a year during 2022-2023, compared to 10-20 percent over five years in other major cities.
In conclusion, the Dubai property market is witnessing a surge in demand for both off-plan and ready properties, with prices on the rise due to limited supply and an influx of high net-worth individuals and residents. End-users, investors, and millionaires are driving the market, seeking properties for personal use or investment purposes. With a strong rental yield and attractive returns, Dubai’s real estate market remains an appealing option for those looking to invest in a thriving and growing economy.
