Where the Dubai property market is (probably) headed in 2024

It’s crystal ball time as the haus & haus experts give their take on the sector’s trajectory and key trends for the year ahead. Spoiler: it’s looking fierce.

It was a tale of expansion in 2023 for Dubai's real estate market with a surge in property prices due to increased demand from both local and international buyers.

Now, as the industry tries to speculate where we’re headed in 2024, there’s a general expectation of ‘more of the same if not better.’

In sharp contrast to most of the world, Dubai's real estate market is poised for a 5-7% price increase in 2024, according to a recent ValueStrat report published in The National.

As a tax efficient and business friendly ‘safe’ haven, the city is attracting a growing population seeking stability and the predicted sustainable growth with fewer spikes.

Talking trends

As for the most impactful trends, our Managing Director Luke Remington recently told Arabian Business he predicts a resurgence of Chinese buyers in the market after something of a pull back during lockdown.

He also tipped Expo City as one to watch for investors.

“The infrastructure that already exists, including a metro station, and sustainable features, make it extremely attractive compared to other new community developments,” he told the publication.

Luke also pointed to increased interest in other Emirates like Ras Al Khaimah (RAK), especially now its headline-grabbing new casino development is drawing eager new investors to the region.

On the secondary sales front, longtime Dubai expat hotspots such as Arabian Ranches and Emirates Living will likely continue to see demand outstrip supply, with owners taking advantage of market conditions by renovating outdated properties and re-selling at higher prices.

And as the population continues to grow, buyers will also need to consider properties further afield.

“Developers are preparing for this demand by building higher-end properties in more ‘affordable’ areas such as JVC and Arjan, which will see the value of these areas increasing,” Luke told Arabian Business.

Despite tenant hopes for rent relief in 2024, limited inventory persists due to lower than expected property handovers in 2023. This means our in-house experts predict a 10-20% rent increase, with investors and landlords standing to benefit from average returns surpassing 6.5%. Existing tenants may opt for renewals, prompting landlords to consider holiday/short-term leasing for increased flexibility.

Top tip areas to watch

Charlie Bannan, Managing Director at haus & haus says in 2024 there is a handful of areas savvy buyers should be thinking about.

First, Tilal Al Ghaf, a new mixed-use community by Majid Al Futtaim featuring a range of elegant apartments, modern villas and townhouses. Described by Dubai property insiders as something of an emerging ‘hidden gem,’ the community represents a huge opportunity for investors and end users alike. In 2024, more of the area’s sub communities will be handing over.

“There is also an ongoing trend of owners extending, adding significant value to the property and this looks set to continue this year. Notably Jumeirah Village Triangle (JVT), which is one of the only places in Dubai where you can get a two-bedroom standalone villa, circa 2,690 sq. ft BUA with a plot large enough to extend up to six bedrooms. We have seen homeowners in JVT add up to 80% in built up area,” revealed Charlie, adding that developers in some other areas have started to limit the size an owner can extend by.

He also pointed to Peninsula by leading developer Select Group in Business Bay which is due to hand over in Q4 of this year. With stunning waterfront and Downtown Dubai views, this gorgeous development of soaring towers and luxury villas will become a new leisure and business hub. 

The conclusion?

While there are always some unknowns in any market projections (and being too certain is asking for trouble), the smart money says Dubai is going to have another enviable, potentially record-busting year.