Dubai’s resilient real estate market survives the LeapRate boom and bust era

Dubai’s real estate market has remained resilient despite predictions to the contrary. The continued rise in prices seem to indicate that the business center has broken the chains of its previous boom and bust trends and metamorphosed into a sustainable market.

Many analysts predicted that growth in Dubai property purchase and rental prices would begin to level off or decline by 2024. However, these assumptions have not materialized. Bloomberg quoted the head of research at CBRE Group Inc. (CBRE), Taimur Khan, who said:

Prices continue to rise and the transitory nature of Dubai seems to have truly come to an end. Whether new or old residents, more are buying to occupy now and so we see prices remaining resilient.

Based on data from Cushman & Wakefield (CWK), residential sales prices have increased for 15 quarters in a row. Rental prices have increased for 13 consecutive quarters. Property sales saw an annual growth of 40%, with over 8,350 residential units sold in Q1 2024.

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The company also indicated a 30% decline in villa launch volumes, as opposed to a 22% increase in apartment project launches. Dubai office occupancy is currently 93% and real estate agents fear this space could run out by 2025.

Despite the Israel-Hamas conflict, cost-of-living challenges and the waning interest of wealthy Russians in Dubai, the city’s real estate market is thriving. Cushman & Wakefield’s head of research and advisory, Prathyusha Gurrapu, said:

Demand is coming from all over, even though Russian buyers have declined in the market. Prices in most areas have now passed their 2014 peaks and are still rising as buyers continue to come from Europe, India and other South Asian countries.