The strong growth of the real estate market in Dubai continues in Q3 2024 and continues to offer promising prospects for investors.
In the first nine months of the year, a total of 112,845 transactions worth AED 298 billion were recorded. This represents an impressive increase of 34% compared to the same period last year (Q1-Q3 2023). Compared to the second quarter of 2024 (Q2 2024), transactions increased by 18%, underlining the continued momentum of the market.
We are pleased to announce some news of our own.
We, Marc and Konrad Schwitter, have been given the opportunity to take over a long-standing, family-run real estate management company, Tekton Immobilien AG in Zurich.
The core business of Tekton Immobilien AG is the management of real estate. Tekton Immobilien AG currently manages over 200 properties with around 3,500 rental and ancillary properties as well as 13 condominium owners' associations with 315 condominium units.
The residential real estate market in Dubai continues to show strong growth. In the first half of 2024, 75,543 transactions worth AED 191 billion were recorded. This represents a 36% increase in transactions year-on-year (H1 2023) and a 17% increase compared to the previous half year (H2 2023), underlining the continued growth of Dubai's real estate market.
Dubai has approved a 128 billion dirham (35 billion dollars) plan to build a new passenger terminal at Al Maktoum International Airport. This terminal will be five times larger than Dubai's current main airport, making it the largest airport in the world.
"Al Maktoum International Airport will have the largest capacity in the world and will handle up to 260 million passengers per year," said Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai and Prime Minister of the UAE, in a statement.
Neither rain, heat nor a full week of holidays can stop the Dubai real estate market from delivering stable results. The real estate market continues to record strong growth. The latest results for the first quarter of 2024 show an impressive transaction volume and underline the resilience and attractiveness of the Dubai market.
As in Switzerland, tenants in Dubai can be given notice to vacate for certain reasons. The reasons include violations of the rental law, such as non-payment of rent or a general violation of the terms of the rental agreement (illegal activities or causing significant damage to the property). Another reason for termination is a mandatory renovation. However, written confirmation from Dubai Municipality is required for this.
In the 4th quarter of 2023, the real estate market in Dubai continued to show its best side. A total of 35,430 properties were sold. This represents an increase of 31.1% compared to the previous year. Of the properties sold, 58% were off-plan projects, which in turn accounted for 66% of the sales volume. The total sales value of the transactions amounts to the equivalent of around CHF 40 billion/euro, which corresponds to growth of 12% compared to the third quarter of 2023.
After experiencing one of the strongest quarters since 2010, the real estate market looks to be starting to slow down in terms of growth. The Dubai Land Department's estimate of real estate value growth will slow to 3% and 4.5% in 2024 and 2025 respectively and stabilize accordingly.
Summer is over and the temperatures are slowly becoming pleasant. Accordingly, the tourist season has started with great vigor. You can feel and see it on the roads in particular - there is significantly more traffic and congestion again. But now to the development of the real estate market in Dubai:
Dubai REST (Dubai Real Estate Transaction) is the smart platform for all real estate services. The app was developed by the Dubai Land Department (DLD). The Dubai Land Department (DLD) is the official authority in Dubai that regulates the real estate sector.
On November 11, 2022, we last informed you about the current status of the Dubai Pearl, the eyesore directly in front of the Palm Jumeirah. In it, we reported that, at best, things could now finally move forward with the Dubai Pearl, since a Canadian hotel company, MOON, has announced interest in the Dubai Pearl and work has resumed on the ruined building.
As a reminder - the project has been a ruined building since 2002, 21 years ago.
In November 2022, the demolition of the Dubai Pearl began. Now what has happened since then...?
Already we are in the third quarter of 2023, looking at a turbulent second quarter marked by growth. Here is a summary and assessment of the market:
According to Dubai Land Department figures, nearly 30,000 real estate transactions took place in the second quarter, an increase of over 35% compared to the second quarter of 2022. The total value of sales was AED 91 billion, an increase of over 54%. This means prices have risen above everything else.