Despite leading the Dubai real estate market in off-plan sales, the demand for ready to move properties remains exceptionally strong. Budget-friendly units are being snapped up within a month of their launch. End-users and high-net-worth individuals have been driving the demand for ready to move properties, while a supply shortage, exacerbated by an influx of end-users due to rising rental prices, has put further pressure on the market.
Provident Estate stated, “Dubai is attracting over 8,000 new residents monthly, and demand outstrips supply in most launched and sold projects, with affordable ready-to-move properties selling within a maximum of four weeks.”
Engel & Völkers Middle East added, “Demand for properties in 2024 has so far been high for ready-to-move properties, but due to a lack of inventory, we have seen significant growth in the off-plan sector. Transactions in ready-to-move properties have increased by 13.2% year-on-year.” According to the report, ready-to-move property prices increased by 14.57% in the first half of 2024 compared to the same period last year.
Dubai’s population grew from 3.66 million at the beginning of 2024 to 3.754 million by August 1st, putting the city on track to achieve its population growth target by 2040. If the current steady rate of increase continues, the population will reach just over 5.5 million by 2040.
Industry experts predict that most people interested in buying property in Dubai, whether end-users or millionaires relocating to the city, are purchasing for personal use, despite high rental prices.
The 2024 Wealthiest Cities Report by Henley & Partners and New World Wealth reveals that 72,500 individuals in Dubai hold investable wealth or assets that can easily be converted into cash worth US $1 million or more. This number has increased by 78% between 2013 and 2023.
Provident Estate stated, “Dubai’s real estate market has seen consistent growth with record-breaking sales across all segments. The end-user market, in particular, which has been on the rise since 2020 due to the UAE’s stability, has witnessed a surge in prices for villas and townhouses amid a supply shortage. Dubai’s luxury real estate continues to attract high-net-worth individuals and investors seeking prime property opportunities.”
The average rental yield in Dubai’s real estate market is currently between 6% and 8%, while in cities like London and Hong Kong, it is between 2% and 3%, and in New York, between 3% and 4%. While Dubai saw an 18% increase in property prices in just one year from 2022 to 2023, the average price increase in the aforementioned three cities has been between 10% and 20% over five years.
The demand for ready to-move properties in Dubai remains strong, with budget-friendly units selling out within a month. Ready-to-move property prices increased by 14.57% in the first half of 2024. The average rental yield in Dubai is between 6% and 8%, higher than cities like London, Hong Kong, and New York. If you are looking to invest in the UAE by purchasing property in Dubai, now is an excellent opportunity.
Source: https://www.propertynews.ae
