THE MIDDLE EAST
DUBAI
The Dubai market went white-hot in 2024, smashing records. The first half of the year saw a total of US$63.5 billion in sales across 80,000 transactions, increases of approximately 30% year over year and the most sales ever for the city in a half-year period.
“This was fueled in large part by the booming off-plan market,” says Jackie Johns, managing partner at Christie’s International Real Estate Dubai. Off-plan sales are sales in planned new-construction developments. “Remarkably, 80% of all off-plan units launched since 2022 have been sold – this in a city where 1Q24 saw more than one off-plan launch per day.” The market continues to attract buyers from diverse regions including the U.K., India, China, Europe, and North America. Dubai welcomed more than 6,500 millionaires in 2024, drawn by favorable tax regimes – the United Arab Emirates has no real estate, capital gains or income tax – as well as the UAE’s Golden visa program, which allows individuals to obtain residency for 10 years if they own property valued at a minimum of AED 2 million. The market is also seen as secure amid current global instability. Rental yields are another area where Dubai shines. The market currently provides annual returns of 5-8% on residential rentals and higher yields on short-term rentals. Off-plan properties can appreciate by 30% or more between the start of construction and when a buyer takes possession. Johns says that branded residences will take center stage in 2025 as international buyers seek familiarity in luxury big-ticket purchases. Additionally, she is noticing an increased focus on sustainable development, especially following the COP28 Summit (United Nations Climate Change Conference), which Dubai hosted in 2023.
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