Based on the results for the first quarter of 2024, the residential and commercial real estate market in Dubai can be characterized as stable and showing growth.

In Q1 2024, the volume of real estate purchase transactions increased both in quantity and value terms versus a similar period of 2023. One of the best results (13.4 thousand transactions) was recorded on the real estate market this March for the last 15 months.

About 89% of all transactions involved residential real estate acquisitions. Commercial real estate accounted for only 2% of the total volume of transactions.

At the end of Q1 2024, the median transaction value increased for all property types vs. a similar period of 2023. However, the largest increase in value was observed for villas and land plots.

Rental prices for residential and commercial real estate are increasing, but for commercial real estate more actively due to the limited supply of both high-quality ready properties and new projects under construction on the market.

At the present time most transactions completed in Dubai (around 76%) are not backed by mortgage loans, mortgage deals being closed only with finished real estate. Banks are gradually lowering their interest rates on mortgage loans. This boosts the purchase of completed real estate and this tendency will continue in the months to come.