Dubai, a majestic city in the United Arab Emirates, is renowned for its innovative construction and property projects. Each year has brought new challenges and opportunities for the housing market in this metropolis, and 2024 will be no exception. Unique residential complexes, new payment option, rising cost of property in Dubai the UAE – what else awaits foreign investors?
Ahead of this year, we take a look at 11 key trends that will shape the housing market in Dubai in 2024.
Sustainability and green technology
In light of global climate challenges, building sustainable and green properties is becoming the norm. In 2024, Dubai will aggressively pursue innovative technologies to reduce its environmental impact, including solar panels, water recycling systems and energy efficient solutions.
Mixed use of space
Mixed use space projects that combine housing, business and entertainment are becoming increasingly popular. This creates unique urban centres where residents can be close to jobs, shopping and entertainment facilities.
Prospective homeowners are shifting from central and expensive regions to emerging suburbs of Dubai and new residential developments like Townsquare, Reem, Arjan, and Jumeirah Village Circle (JVC), seeking more room and a more affordable price tag. When contrasted with the central and premium sections, these neighborhoods are still reasonably priced.
Digital innovations in property management
In 2024, blockchain and artificial intelligence technologies will be widely used to improve property management systems. This includes improved rental processes, online platforms for owners and new forms of digital customer interaction.
These days, bitcoins, Etherium, and a few other cryptocurrencies can be used to purchase real estate in Dubai. Many realtors and real estate developers have already successfully implemented this way of payment. The UAE Central Bank, however, mandates that property values be determined using the exchange rate in dirhams (AED). Although the UAE does not yet recognize digital currencies as legal money, residents are nevertheless permitted to purchase and sell them.
An increase in Dubai’s first-time buyer population
There has been an increase in the number of first-time buyers in Dubai, who are shifting from renters to owners prepared to purchase properties up to AED 3 million, while rents continue to rise at a record rate due to strong demand. Suburban flats and modest townhouses are highly sought after.
Focus on exclusive projects
Exclusive property projects, such as luxury apartments with sea views or magnificent penthouses, will attract the attention of high-net-worth investors and those looking for unique accommodation.
There are a lot of new projects under construction in Dubai that will be completed in 2024:
- The skyscraper Burj Binghatti. The project is located in Business Bay and will have 100 floors. The luxury development will feature 2-bedroom and 3-bedroom residences.
- The skyscraper Wasl Tower. It is a 64-storey building with an original asymmetrical design. The structure will be one of the tallest buildings in the world with an ecological orientation.
- The Ciel Tower. The 82-storey building with a height of 365 metres will be the world’s tallest hotel. Ciel Tower will have a 300-metre-high internal atrium with vertical terraces with landscaped design and natural ventilation.
- Villas Expo Golf Villas 4. The villa complex is located in the Emaar South neighbourhood. It includes a community centre, gymnasium, shops, restaurants and parks. The highlight of the complex is the 18-hole championship golf course.
More objects for sale can be found through Emirates.Estate. The updated database offers a variety of unique housing to cater the needs and budgets of foreign investors.
Infrastructure projects and neighbourhood development
The development of infrastructure and new neighbourhoods in Dubai will continue to attract both local and foreign investors. This creates new opportunities to develop residential developments and improve the lives of the urban population.
Attention to environmental sustainability
Property owners and developers will endeavour to certify environmental sustainability and implement green building principles to reduce environmental impact.
In residential construction projects, homeowners will use eco-friendly materials, add solar panels or other renewable energy sources, and integrate energy-efficient designs in an effort to attain environmental sustainability. These initiatives seek to reduce carbon emissions and develop houses that adhere to green building standards.
Investment in medium price segment properties
With the increasing number of young professionals and families, the demand for mid-price segment properties will increase. Developers will aggressively invest in projects that cater to the needs of this audience.
In 2024, there will likely be even more new projects in Dubai, so those looking for real estate will have more possibilities. It is anticipated that 67,000 new apartment units would be supplied in 2024, up from about 50,000 this year.
In 2024, there will be a greater number of properties available as sellers try to capitalize on the present market rates. Additionally, real estate developers will keep starting new projects faster. This extra supply is probably going to prevent a significant spike in price growth. Renters may find some respite in the second half of 2024 as the supply of new residences will lessen the strain on the existing rental market.
Promotion of smart housing
With the development of the Internet of Things and smart home technologies, residential developments will offer smarter and more efficient housing management systems, enhancing the comfort and safety of residents.
Foreign investment in real estate
Dubai remains attractive to foreign investors. Their participation in the property market is expected to increase in 2024, supporting diversity and contributing additional funds to the city’s development.
Over the course of the upcoming year, property prices in Dubai are anticipated to rise steadily at a rate of between 3.5 and 5 percent, helped by the city’s ongoing population expansion, a competitive economic climate, and government efforts that are drawing in foreign investors and residents.
Conclusion
In 2024, Dubai’s housing landscape is undergoing a transformative evolution marked by ten key trends. From sustainable architecture to smart home integration, these trends signify a shift towards a dynamic and technologically advanced property market, catering to the diverse needs of residents and reflecting Dubai’s commitment to innovation and modern living.