Despite the off-plan segment dominating the Dubai property market, demand for ready properties remains robust, with 'rightly-priced' units typically selling within a month of listing. Fueled by interest from high net-worth individuals and local residents, the ready property market is experiencing a supply shortage due to the influx of end-users driven by escalating rents.
"Dubai is welcoming over 8,000 new residents each month, and in most projects, demand exceeds supply, leading to quick sales of correctly priced ready properties, often within four weeks of hitting the market," Provident Estate noted. Engel & Völkers Middle East reported a 13.2 percent annual increase in ready property transactions and a 14.57 percent price rise in the first half of 2024 compared to the previous year.
Dubai is progressing towards its 2040 population growth target, with the population rising from 3.66 million at the start of 2024 to 3.754 million by August. At the current growth rate, the city is projected to exceed 5.5 million residents by 2040. Industry leaders observe that most ready property buyers in Dubai, whether end-users or relocating millionaires, are residents or investors seeking personal use properties amid high rents.
According to the World’s Wealthiest Cities Report 2024 by Henley Partners and New World Wealth, Dubai's millionaire population grew by 78 to 72,500 between 2013 and 2023. Provident Estate highlighted the continuous growth in Dubai's real estate market, particularly in the end-user segment, which has seen villa/townhouse prices rise due to limited supply. Luxury properties continue to draw high net worth individuals and investors.
Dubai's property market offers an average rental yield of 6-8 percent, higher than London, Hong Kong, and New York, which range from 2-4 percent. While these cities saw property price appreciation between 10 to 20 percent over five years, Dubai experienced an 18 percent increase in just one year during 2022-2023.
