Dubai Property Booms On Investment Surge, Affordability Key - Smart Zones® Luxury Properties

Dubai Property Booms On Investment Surge, Affordability Key


The Dubai real estate market is exhibiting strong momentum with no signs of abating. Sales volume in the first quarter of 2024 saw a significant increase of 19.3% compared to the same period in 2023. This surpasses the record-breaking sales volume achieved in Q4 2023, highlighting the market’s continued strength.

An analysis of property values reveals a trend towards more affordable options. 30% of all properties sold fell below the AED 1 million mark, with a significant 80% coming in under AED 3 million. This preference for affordability aligns with the rising number of buyers utilizing financing compared to cash purchases.

Dubai’s removal from the Financial Action Task Force (FATF) grey list has boosted investor confidence. The city’s enhanced financial standing solidifies its position as a secure haven for investors and international institutions.

The off-plan market continues to dominate, with new projects being launched at a faster pace – with developments launching every 17 hours compared to the previous timeframe of 36 hours.

Apartments remain the preferred property type, capturing the highest share of total sales in Q1, with a notable 13% increase from Q4’s record. Prime residential districts like Jumeirah Village Circle, Dubai Marina, and Business Bay maintain their top positions in terms of sales volume.

The surge in finance buyers is another noteworthy trend. Mortgage applications accounted for a record 53% of sales, exceeding cash purchases for the first time. This 41.7% increase in financed purchases is attributed to rising rent prices alongside favorable interest rates.

Despite the focus on affordability, the luxury market remains active. The record-breaking sale of an AED 72 million villa exemplifies this strength.

Dubai’s recognition as the world’s most visited city has attracted a significant influx of expats, with over 25,700 new residents in the first quarter alone. This population growth is expected to further propel the market’s upward trajectory.

Market experts predict significant growth, suggesting Dubai is on the verge of its strongest boom in a decade.

   

Publish 9 Apr 2024

Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-how-uae-fatf-grey-list-boost-is-driving-investments-and-affordable-property-is-set-to-boom/

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