Dubai Real Estate Market to Grow 5% in 2024

Experts believe that the market has witnessed remarkable expansion, solidifying its status as an attractive investment hub

Dubai’s real estate market continues to thrive, positioning itself as a prime destination for investors seeking diversification and high returns. According to Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., recent data reveals that investment in Dubai’s real estate market reached a staggering $100 billion in 2023, with a predicted growth rate of 5% in 2024. The UAE economy is also on track to achieve 4.5% growth. The significant economic growth in the UAE is expected to benefit various industries, with the real estate sector in Dubai standing out prominently.

Rapid Growth in 2023

The market has witnessed remarkable expansion, solidifying its status as an attractive investment hub. In 2023, real estate transactions experienced an extraordinary surge, with the value increasing by over 36.7%. The industry recorded a record-setting year with 116,116 real estate transactions, totalling $429.67 billion, driven by a transactional growth of 33.8%.

Kooijman also highlighted the positive outlook for Dubai’s residential real estate market, anticipating a substantial growth rate of around 15% in 2024. He emphasises that the consistent growth of Dubai’s real estate market presents lucrative opportunities for astute investors to benefit from capital appreciation in the UAE’s stable and diversified economy.

Essential insights

• The significant economic growth in the UAE is expected to benefit various industries, with the real estate sector in Dubai standing out prominently
• The real estate sector in Dubai has experienced significant expansion, with a surge in transactions and a value increase of over 36.7% in 2023
• The industry recorded a record-setting year with 116,116 real estate transactions, totalling $429.67 billion, driven by a transactional growth of 33.8%.

“Dubai’s real estate landscape presents a unique and compelling opportunity for people seeking multiple investment opportunities in real estate,” Kooijman said. One of the key advantages of investing in the emirate’s real estate market is the potential for high rental income. The city offers an impressive return on investment, with annual yields reaching up to 10%, he added. This surpasses rates seen in many other major markets such as New York and London.

Kooijman also noted that the opportunity to purchase properties at reasonable prices and subsequently rent them out at a high annual yield positions Dubai as an ideal location for investors looking to maximise their returns, with profit margins ranging from 5% to 9%.