The Dubai Real Estate Market Review Report: Q1 2024
Welcome to The AirDXB Group Dubai Real Estate Market Review Q1 2024 Report. This report provides insights on trends and statistics impacting the Dubai real estate sector, covering the three key sub-sectors: transactions, short-let investments and long-term rentals.
Key developments in Q1 2024 impacting the Dubai real estate sector
Verified property listings
The government are making key updates to real estate regulations in order to safeguard the industry and to enhance transparency in the market for sellers, buyers, landlords and tenants alike. One such step is the introduction of QR codes to verify property listings. All real estate agencies are required to register their properties with the Dubai Land Department and obtain a unique reference number for each property. This gives buyers and tenants greater confidence in their investment decisions and should ensure faster sale and contract agreements for sellers and landlords.
Eviction notices now attached to the property
Another key development this quarter is the new rule regarding eviction notices. These are now attached to the property rather than the landlord, meaning that once served an eviction notice, even if an existing landlord sells the property, the terms of the notice still stand, including timeline for the tenant to vacate. This means the new owner gets full control of their property faster and will make the sale process much more efficient.
RERA rental calculator adjustment
In the long-term rental market, the Real Estate Regulatory Authority (RERA) issued a new rule allowing landlords to adjust rental prices at the time of tenancy renewal in order to align with current market value, ie rental increases are no longer capped at 5%. With landlords able to increase rents by up to 20%, we may see a drop in tenancy renewals in areas that are affected by the price surge with people choosing to move further afield for better value. This may in-turn stabilise the rental situation and mitigate price increases in already expensive areas. We expect this regulatory change will also result in a spike in the transactional market as property ownership becomes an even more attractive investment opportunity.
Dubai’s population surge: increasing supply of buyers
The market is showing no signs of slowing down. Dubai’s population saw a surge of 25,700 in Q1 2024, expanding to a total of 3.7 million people. From a short-term perspective, this is good news for the rental market, however it also remains positive for the transactional market, as there will be more buyers pushing demand long-term. The UAE Central Bank has stated they predict inflation to rise to 2.5% in 2024, which is still below the global average. These macroeconomic factors, combined with various others, are bolstering the Dubai real estate market and making it lucrative for the foreseeable future.
Short-let market continues to prosper
The short-let market continues to prosper. As property investors are becoming more knowledgeable in alternative ways to earn returns, we are seeing an increase of stock in the Dubai market, plus an increase in market revenue. The Dubai short-let market is unique to other markets, as professionally managed properties stand-out for their hotel standards and high quality of furnishings and amenities, as well as guest care and experience. Similar to RERA, Airbnb are introducing safeguarding protocols to ensure listings are verified and therefore genuine, as well as other steps to reduce cancellations and improve guest experiences. As a SuperHost, we welcome these changes which can only help better serve the community.