Dubai real estate market could grow by 5% in 2024

The Dubai real estate market remains a popular destination among international investors, especially those seeking opportunities to diversify their assets. The popularity among foreign buyers has allowed the emirate to attract over $100 billion in real estate investments in 2023, and now positions it for a projected 5% market growth by the end of 2024. In addition to demand, experts point to the economic growth of the UAE, expected to reach 4.5% this year, as a significant factor for real estate market stability.

In 2023, the Dubai real estate market saw a remarkable annual growth of 36.7%, recording a record 116,000 transactions that generated over $429.6 billion for the sector. Analysts emphasise an optimistic forecast for the residential real estate market in the emirate. Some experts boldly assert the potential for nearly 15% growth in the residential segment by the end of 2024.

Either way, the steady growth of the city's real estate market provides lucrative opportunities for experienced investors. Dubai is actively diversifying its economy, and the construction sector follows this general trend. Additionally, investors can expect high and stable returns from the rental housing segment. In some cases, returns on investment can reach 10%, although an average of around 8% is expected. This is comparable to opportunities in New York and London, which offer returns in the range of 5–9% for the same property categories.