The latest Dubai 4th quarter real estate review report from ValuStrat, a globally recognised consultancy specialising in multi-sector advisory services, has revealed insightful dynamics in Dubai’s real estate market. The report comprehensively analyses the residential, commercial, and hospitality sectors and underscores a market showing robust growth and market activity.
Haider Tuaima, Director and Head of Real Estate Research, shares his synopsis of Dubai’s real estate market.
According to him, preliminary estimates suggest that 58% of the projected residential supply was delivered, with approximately 27,000 homes completed in 2024 – the lowest in six years. Meanwhile, population growth exceeded expectations, adding over 170,000 new residents in 2024, the highest growth since 2018. This imbalance between supply and demand fuelled widespread increases in property prices and rental rates.
The ValuStrat Price Index reported annual capital value increases across key sectors: apartments rose 23.6%, villas 31.6%, offices 23.9%, and warehouses 15%. Annual rents also climbed, with villas up 5.8%, apartments 13%, and offices 22.5%.
However, challenges included declining residential and office transactions, primarily due to reduced off-plan sales.
Despite this, ready sales hit an all-time high, achieving the highest number of transactions in a single quarter.
With 155,000 hotel rooms, the hospitality sector performed exceptionally well, with 78% occupancy and a 2.8% rise in revenue per available room (RevPAR).
He concludes that Dubai’s real estate market in 2024 thrived on limited supply and rising demand, with significant capital and rental value increases across sectors. Population growth and record-ready sales offset declines in offplan transactions, while the hospitality sector excelled with high occupancy and revenue gains, underscoring the city’s enduring appeal and resilience.
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About ValuStrat:
ValuStrat is an international consulting group providing Advisory, Valuations, Research, Transaction Advisory, Due Diligence and Industrial Consulting services, working across various industry sectors. With 45+ years of experience, a network of 14 offices in 5 countries and a client base of 1,000 corporations across the Middle East, UK, Europe and Africa, ValuStrat assists diverse clients, from governments, multinationals, large local corporations and financial institutions to startups, SMEs and family businesses. For Valuation services, it is the preferred service provider to over 120 financial institutions across the EMEA region.
