Dubai Property Prices 2024: Know How Much Dubai Property Costs

The web is overflowing with information about the importance of Dubai's real estate market, as well as changes and updates. However, the ultimate information, combined with a comparative analysis, is very important to understand the Dubai real estate market if you plan to invest or buy properties in Dubai. ‘How much Dubai property costs’ is a question that pops into an investor's mind because they already know this is the place where business thrives and people from all around the world unite. Moreover, Dubai is the safest city to invest in and earn good returns. It is time to ponder deep Dubai Property Prices 2024.

The Dubai economy has been in rapid growth in recent years, prospering in all its sectors like petroleum, tourism, transport, finance, and real estate. The city has overcome the downfalls faced during the COVID-19 pandemic in property values. Even though every industry faced a decline, after reopening borders there was rapid escalation in the growth and economy of Dubai. Let us look in deep the status of Dubai's real estate market.

Dubai Property Prices in 2024

Dubai is a city with a unique blend of modern infrastructure, tax-friendly policies, and a cosmopolitan lifestyle. These magnetize investors from different parts of the world making it an attractive destination for property buying and investing. Dubai property prices 2024 for both off-plan and secondary properties are drawing significant interest.

Off-Plan Property Prices -2024

The number of homes bought at the construction stage is increasing in Dubai. As of the month June 20, 2024, Off-Plan property transactions amounted to $7.4 billion (27,180,311,000 AED). Because these properties are under construction, their prices tend to be lower than those in established regions. This is what makes buying off-plan properties in Dubai an affordable option and the possibility of the value of your property increasing as construction gets completed. Here is the comparison of Off-plan sales from January 2022 to August 2024 as follows

From July 2022 to August 2024, the overall trend in off-plan apartment prices in Dubai shows an increase from 5,000 USD (18,350 AED) to 5,310 USD (19,487.70 AED), resulting in a total increase of 310 USD (1,137.70 AED) over this period. This reflects a percentage increase of approximately 6.2% over the two years, indicating a gradual recovery and upward movement in the real estate market.

The provided infographic shows a significant increase in off-plan property sales transactions in Dubai during August 2024 compared to the same month in 2023 and 2022. Specifically, the number of transactions in August 2024 was 50% higher than in August 2023 and 6% higher than in July 2024. This trend indicates a growing interest in off-plan properties in Dubai, likely driven by factors such as favorable market conditions, developer incentives, and investor confidence. Till September 23, 2024, the transactions are 8,027 with a total transaction of 16.30 billion AED. To accurately predict the month, Dubai off-plan sales transactions will surpass August 2024 levels.

Secondary Property Prices - 2024 

Secondary properties or ready-to-move-in properties offer immediate rental income and a clearer picture of the area and amenities. In 2024, Dubai's real estate market shows a diverse price landscape, with premium areas like Dubai Marina and Jumeirah commanding the highest prices, while more affordable neighborhoods like Motor City and Meydan City attract budget-conscious buyers. This reflects the market's resilience and ongoing appeal, offering opportunities across various segments. 

Luxury Property Prices in Dubai

The cost of a villa as well as a townhouse within Dubai can range from 5.5 million up to 17.5 million AED ($1.5-4.5 million) according to the location. The most expensive homes are found on the Palm Jumeirah Islands, while smaller villas are located in areas that are more modern, such as DAMAC Hills as well as DAMAC Hills 2.

The Dubai rental market 

A dramatic improvement in 2022 and continues to grow through 2023 and 2024 in the Dubai properties rental market. It was in 2022 Russia invaded Ukraine, and as a result, the European countries became unsafe to invest. A lot of investors from Russia, Ukraine, and other nationalities started shifting their investments and businesses to Dubai. Between January and March 2024, the Dubai Land Department registered 159,000 leases. Dubai Land Department, representing an increase of 5.8 percentage increase over 2023. The rental rates are slowly catching up with the rising cost of property, which is increasing the confidence of investors. 

Average Rent Price for Dubai for 2024

Dubai apartment rental costs have increased to an annual median rent of $16,974, up 6% year over year for leases with new tenants. Popular apartment locations included Jabal Ali First, Al Warsan First, Dubai Marina, Al Nadha Second, and Al Barsha South Fourth in 2023 for leases with new tenants. While villa median annual rental rent increased 12 % year-on-year.

Dubai Property Prices to be Forecasted for 2025

The UAE remains a desirable and affluent market for foreign investors because of its easy movement of capital and its reliability. As European markets place restrictions on foreign investment, accompanied by rising taxes and inflationary issues, investors are increasingly attracted by Dubai's Middle Eastern real property market.

Investors from abroad are enticed by the UAE's dedication to neutrality, which includes ensuring the flow of capital, as well as protecting the personal information of both account holders. Furthermore, those who buy a property valued at more than 2 million dirhams (approximately $544,511.00) may be granted a Golden Visa with benefits with an official Residence permit in Dubai.

The Dubai Land Department reports a steady rise in the number of real estate transactions during the last three years. Top Dubai developers have begun work on new developments that are attracting an enormous amount of attention. As an investor getting instant updates and knowing investment opportunities is very important.

FAQs

What is the expected average price increase in Dubai properties for 2024?

Based on current trends and expert opinions, compared to 2022 and 2023, the prices were at a high scale, which is comparatively low now. An average price increase of 5-8% is expected in Dubai properties for 2024, with some prime areas potentially seeing higher growth. So it is now the best time to invest.

Are there any restrictions for foreign investors buying property in Dubai?

Foreign investors can now buy property in designated freehold areas in Dubai without major restrictions. However, it's advisable to consult with a legal expert for the most up-to-date information.

Which areas in Dubai offer the best rental yields?

Areas like Dubai Marina, Jumeirah Lake Towers, and Business Bay typically offer attractive rental yields, often ranging between 6-8% annually.

New ways of investing?

Avarten Invest offers an innovative approach to property investment in Dubai. They provide opportunities to start investing in multiple off-plan properties from as low as AED 25,000, allowing investors to co-own properties developed by top Dubai developers. This approach can be particularly appealing for those looking to diversify their investment portfolio with a lower initial capital outlay.