As of June 2024, Dubai's population has exceeded 3.7 million marking a substantial increase of over 269,000 residents from Q1 2021 to Q1 2024. This steady demographic growth continues to fuel robust demand for residential and commercial properties across the emirate.

The residential sector in Dubai has seen substantial expansion efforts to accommodate the growing population and increased foreign investment. In 2023, Dubai witnessed the completion of 27,450 apartments with an additional 7,300 apartments projected for 2024 bringing the total to 26,300 new units by year-end.

The villa market has also shown strong activity with 7,500 villas completed in 2023 and an anticipated 2,750 more in Q1 2024. The projected total for 2024 is 6,000 villas reflecting sustained demand for spacious accommodations particularly among expatriate families.

Dubai's commercial sector has expanded notably with 0.65 million square feet of office space completed in 2023. An additional 0.35 million square feet is expected to be completed by the end of 2024 to meet the growing needs of diverse industries.

From early 2021 to early 2024, Dubai's rental market experienced substantial growth driven by increasing demand. Prime areas such as Palm Jumeirah, Dubai Marina, Downtown Dubai, Jumeirah Village and JBR saw rental increases ranging from 65% to 85% for apartments. Villa rentals in sought-after locales like Jumeirah Islands, Palm Jumeirah, Dubai Sports City, Dubai Hills Estate and DAMAC Hills surged significantly with growth rates between 96% and 106%.

Even areas with more moderate rental growth exhibited positive trends. Meydan/MBR City, Mirdif, Bur Dubai, Dubai Land and Deira recorded rental growth rates ranging from 16% to 35% for apartments while villas in DAMAC Hills 2, Dubai Land, Dubai Silicon Oasis, Mirdif and Reem saw growth rates between 29% and 44% highlighting growing expansion citywide.

Rental rates have soared to record highs due to unprecedented demand for ultra-luxury properties with 270 rental transactions signed in the first five months of 2024 for properties commanding annual rents of DH 1 million or more.

According to the Henley Private Wealth Migration Report 2024, the UAE is poised to welcome over 6,700 new millionaires this year marking the third consecutive year of the highest influx. The UAE currently hosts 116,500 millionaires with liquid investable wealth exceeding $1 million along with 308 centi-millionaires (with assets over $100 million) and 20 billionaires.

Dubai's real estate market continues to thrive amid a booming population, expanded residential and commercial offerings, dynamic rental market dynamics and an influx of affluent individuals. With favorable economic indicators and sustained investor confidence, Dubai remains a premier global real estate destination poised for continued growth in the years ahead.

For more insights and personalized real estate opportunities in Dubai, contact Union Square House Real Estate Company today.