Dubai's real estate market has shown impressive growth and resilience in recent months, according to the latest ValuStrat report. ValuStrat, a globally recognized consultancy specializing in multi-sector advisory services provides an in-depth analysis of Dubai's real estate landscape. The report comprehensively analyses the residential, commercial and hospitality sectors highlighting robust growth and market activity.

The ValuStrat Price Index for Residential Capital Values increased by 6.4% quarterly reaching 178.2 points. This rise is supported by a notable 28.2% annual growth. The villa market has shown impressive strength with values rising to 226.6 points, a 33.4% increase year-on-year and 7.3% from the last quarter. Palm Jumeirah and Jumeirah Islands were standout performers with annual value increases of 43.1% and 42.5%, respectively.

Rental values have also continued to rise. The ValuStrat Rental Index grew by 2.7% quarterly and 10.8% annually reaching 188.7 points. Apartments saw a 16.9% increase in asking rents year-on-year averaging AED 88,100. Villa rents increased by 3.5% annually, reaching AED 408,200. The occupancy rate for residential properties stands at 87.7% for the first half of 2024.

Dubai's real estate market is also seeing robust supply. This year, 38,174 new units are expected with notable completions including Creek Views and Brand Blue Tower. The market for off-plan properties is strong with transactions growing by 61.4% year-on-year and 19.1% quarter-on-quarter. The average price for off-plan properties is AED 2.4 million.

In the ready property segment, there were 11,508 transactions in Q2 up 4.8% from last year. The average price for ready properties has increased to AED 2.5 million.

The office market is showing solid growth with a 9.4% increase in capital values, reaching 212.5 points. The hotel sector also performed well with an occupancy rate of 81.0% as of May 2024, up 1.4% from last year. The average daily rate (ADR) has increased to AED 590 and revenue per available room (RevPAR) has risen to AED 478 reflecting a 6.7% year-on-year growth.

The UAE's economic growth is expected to exceed 6% by 2025, with the IMF predicting a 4% rise in GDP for 2024. Dubai's population has grown to 3.7 million and future plans include relocating Dubai International Airport to Al Maktoum International Airport which will be significantly larger.

Haider Tuaima, Director and Head of Real Estate Research at ValuStrat, said the Dubai real estate market has shown impressive growth and resilience in recent months. Dubai International Airport anticipates its yearly passenger traffic to reach 93.8 million by 2025.

The ValuStrat report indicates a thriving Dubai real estate market with strong growth in residential, commercial and hospitality sectors. The market continues to expand driven by robust economic fundamentals and increasing demand.