While the off-plan area leads the current property rise in Dubai, the want for ready properties also remains high as ‘suitably-priced’ homes are sold within a month of listing it for sale.
Ready properties are also experiencing a supply scarcity because of the increase of end-users in the city because of the rising rentals due to the demands of customers such as high net-worth individuals or millionaires and residents.
“Approximately, 8,000 plus families are relocating to Dubai every month, demand outstrips supply in most of the projects being launched and sold out and ready properties that are properly priced are selling within a maximum of one month of being on the market,” Provident Estate said.
“There was robust property demand in Dubai in 2024 up to now in ready properties however, due to limited stock most of the growth has come from the off-plan segment,” Engel & Völkers Middle East added that the yearly growth of ready property transactions was at 13.2 percent.
It said that the ready property prices escalated by 14. 57 percent in the first half of 2004 compared to the first half of this year or the first half of the year 2024 compared to the same period of year 2023.
Increasing end-users
To a large degree, Dubai recorded population growth to reach the 2040 plan with the increase of residents from 3. Beginning of 2024, 66 million to 3. The borrowing level was 754 million on the 1st of August. Such a rate of population increases if maintained will reach a population of just over 5. 5 million by 2040.
Interjections from industry captains indicate that most consumers of the ready property whether traders and end users or millionaires moving to Dubai to live in their property are those who intend to use the property for self-use due to high rents.
Based on the Henley Partners and New World Wealth, the World’s Wealthiest Cities Report 2024, the population of Dubai with liquid investment assets of $1 million and above or easily convertible to cash stood at 72,500, up by 78 from the 2013 figure.
“Dubai property market remains on an upward growth trajectory with record sales across all property segments this year The end user segment which has improved from the year 2020 due to the stability of the emirate has seen the villa/townhouse prices rise due to limited supply The luxury residences market in Dubai has remained attractive for the high net worth individuals and investors seeking superior quality properties,” Provident Estate said.
Dubai property projects are selling rapidly, almost 90% of the sales made by first-time buyers
Today, the average rental yield for the market in Dubai is in the range of 6-8 percent while in London, whereas in Hong Kong, and New York it is 2-3 percent and 3-4 percent respectively. For the above three cities, the average property price over the five years was somewhere between 10 to 20 percent whereas Dubai had an 18 percent increase in the year 2022-2023.