Dubai’s property market has remained resilient despite forecasts to the contrary. Continuing rising prices seem to indicate that the business centre has broken the chains of its earlier boom-bust trends and has metamorphosed into a sustainable market.
Dubai’s Resilient Property Market Survives Its Boom-Bust Era
Many analysts predicted that Dubai’s spike in property purchase and rental prices would start to abate or fall by 2024. However, these assumptions did not materialise. Bloomberg quoted the head of research at CBRE Group Inc. (CBRE), Taimur Khan, who stated:
Prices are continuing to rise and the transient nature of Dubai seems to be well and truly over. Whether new or long-standing residents, more are buying for occupancy now and as a result we’re seeing prices remain resilient.
Based on Cushman & Wakefield (CWK) data, residential sale prices increased for 15 quarters in a row. Rental prices soared for 13 consecutive quarters. Property sales recorded a year-on-year increase of 40%, and more than 8,350 residential units were sold during Q1 2024.
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The company further indicated a dip of 30% in villa launch volumes as opposed to a 22% spike in apartment project launches. Presently, Dubai’s office occupancy is 93% and realtors fear that this space may run out by 2025.
Despite the Israel-Hamas conflict, price-of-living challenges and the diminishing interest of affluent Russians in Dubai, the city’s property market is flourishing. Cushman & Wakefield’s head of research and advisory, Prathyusha Gurrapu, said:
Demand is coming from everywhere even though the Russian buyers have declined in the market. Prices at most areas have now surpassed their 2014 peaks and are still growing as buyers keep coming from Europe, India and other South Asian countries.
