Dubai Real Estate Market Projected to Expand by 5% in 2024
The substantial economic growth in the UAE is set to favor multiple industries, with the real estate sector in Dubai prominently standing out.
Overview
Dubai’s real estate market maintains its robust performance, solidifying its status as a premier choice for investors pursuing diversification and lucrative returns.
As per Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., recent data indicates that investments in Dubai’s real estate market soared to an impressive $100 billion in 2023, with a projected growth rate of 5 percent in 2024. Concurrently, the UAE economy is on a trajectory to achieve 4.5 percent growth.
The substantial economic expansion in the UAE is poised to positively impact various industries, with the real estate sector in Dubai prominently standing out.
Dubai’s Soaring Real Estate Market
Dubai’s real estate market experienced a significant boom in 2023, solidifying its appeal as an investment hub. Real estate transactions saw an exceptional surge, marking a remarkable 36.7 percent increase in value. The industry recorded a record-setting year with 116,116 transactions, totaling $429.67 billion, driven by a growth of 33.8 percent.
Bas Kooijman highlighted a positive outlook for Dubai’s residential real estate market, anticipating a substantial growth rate of around 15 percent in 2024. He emphasized the consistent growth, presenting lucrative opportunities for savvy investors to benefit from capital appreciation in the UAE’s stable and diversified economy.
Kooijman noted that investing in Dubai’s real estate market offers high rental income potential, with annual yields reaching up to 10 percent, surpassing rates in major markets like New York and London. The opportunity to purchase properties at reasonable prices and rent them out at a high annual yield positions Dubai as an ideal location for investors seeking maximum returns, with profit margins ranging from 5 percent to 9 percent.
