By dubailife 
Dubai’s residential property market continued its robust growth in Q2 2024, with property values increasing by 21.3% year-on-year, driven by tightening supply and the rising popularity of the ‘buy-to-stay’ trend, according to a global real estate consultancy.
Over the past 12 months, the average residential property price in Dubai surged by 21.3%, with villas outperforming apartments. Villa prices grew by 24.3%, reaching Dh1,896 per square foot (psf), putting them 28% above the 2014 market peak.
Knight Frank’s Q2 Dubai Residential Market Review highlights the enduring appeal of stand-alone villas, beachfront homes, and branded residences, all of which provide immediate access to Dubai’s luxury lifestyle. The 2024 Destination Dubai report from Knight Frank emphasizes that access to green spaces, wellness facilities, and waterfront living are key factors attracting international property buyers to Dubai.
Dubai’s luxury property sector also saw substantial growth. Prime areas like Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills—collectively known as ‘Prime Dubai’—experienced a 7.0% increase in average transaction prices, which reached Dh3,706 psf by the end of H1 2024. Palm Jumeirah dominated the prime real estate market, with 853 homes sold, accounting for 89.3% of luxury transactions during this period. Jumeirah Islands, Jumeirah Bay Island, and Emirates Hills followed with smaller shares of prime deals.
Faisal Durrani, partner and head of Research for MENA at Knight Frank, pointed out that the trajectory of home prices in Dubai remains upward due to strong demand from both local and international buyers. “The shift in buyer preferences from investment-focused purchases to personal use is contributing to the ongoing rise in property prices, which have now increased for 21 consecutive quarters,” said Durrani.
The number of residential listings in Dubai fell by 22.8% in Q2 2024 compared to the previous year. For the first time since Q1 2022, the number of unique listings in a single quarter dropped below 100,000. Knight Frank also noted a more dramatic decline in luxury home supply, particularly in the four prime areas of Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, and Jumeirah Islands, where available homes for sale have decreased by 47% over the past 12 months, down to 2,851 properties.
“The decrease in available luxury homes reflects the growing ‘buy-to-stay’ and ‘buy-to-hold’ mentality among buyers. More purchasers are acquiring these properties as primary residences, holiday homes, or secondary homes, indicating a maturing market that is increasingly appealing to a broader range of buyers and investors,” explained Petri Mannila, partner and head of Prime Residential for the UAE.
Knight Frank has also revised its estimate of the residential pipeline expected to be completed by 2029. The total number of homes planned or currently under construction stands at 308,099 units, with 82% of these being apartments and the remainder being villas. This equates to an average of 51,350 homes per year over the next six years, a figure still below the estimated 73,000 homes needed annually to meet Dubai’s population target of 7.8 million by 2040, especially given that 30-40% of completions typically experience delays.
Source : Khaleejtimes