Off Market Listing, a Dubai based real estate company recently released their Dubai real estate market forecast for 2024, which highlighted significant changes and trends. Sustainable living is one of those trends that will gain momentum as UAE pushes for its 2040 Urban Master Plan and Net Zero 2050 initiative. Green property development will go mainstream in 2024.
Other prominent real estate market trends highlighted in Off Market Listing forecast includes shift towards luxury living, constant influx of foreign investment in Dubai, real estate market and growing demand for new housing projects. Are you interested in learning more about the real estate trends that will dominate in 2024? If yes, then this article is for you.
7 Real Estate Trends That Will Dominate In 2024
Here are seven real estate trends that will dominate in 2024.
- Luxury Segment Dominance:
One sector of the Dubai real estate market that is gaining a lot of traction lately is the luxury segment. Both local and international wealthy investors will pour millions of dollars into these luxurious real estate properties. The price of luxury properties have already appreciated tremendously and this trend will continue with the passage of time. In fact, the average price of a luxury property has soared to 1 million AED. Expect to see exponential growth in the luxury segment of Dubai’s real estate market in 2024.
As the real estate landscape continues to evolve, understanding the upcoming trends becomes crucial, especially when considering the role of Real Estate Management Software. The year 2024 is poised to see significant shifts in this sector. Here are seven key real estate trends anticipated to dominate the market:
Luxury Segment Dominance:
Dubai’s real estate market is increasingly attracting attention for its luxury properties. This trend is set to grow, with wealthy investors, both local and international, investing heavily. The luxury segment has already seen a remarkable appreciation in value, with the average price of luxury properties reaching 1 million AED. This segment is expected to experience exponential growth in 2024.
Growing Foreign Investment:
Did you know how much money investors poured into the Dubai real estate market in 2023? $50 billion. Yes, you read that right. It is a billion with a B. Expect this trend to continue in 2024. The potential for higher return on investment attracts real estate buyers and investors towards Dubai and the low crime rate and stable economy provides the peace of mind investors need to invest without worrying about anything. Expect more foreign investors to jump in Dubai’s real estate market in 2024.
Rising Demand for Housing:
According to estimates, Dubai’s population is expected to reach 3.5 million by 2024. Combine that with continuous influx of foreigners and tourists and expect the housing demand to soar in 2024. This surge in demand for housing can both be a boon or a bane. On one hand, this is great news for real developers and real estate brokers in Dubai as they can construct and sell more real estate properties to meet that demand but it will also put more pressure on the real estate market especially when it comes to real estate properties.
Strong Rental Market:
Not everyone can afford to buy a new residential property in the heart of Dubai and some might not need to. If you are one who wants to live in Dubai for a short period, you can consider renting. Skyrocketing demand for housing will also push the demand for rental properties to go up.
With more people interested in renting real estate properties than the available options, the demand will stay strong throughout 2024. Expect rents to rise by at least 3% or even more in 2024. This would eventually benefit real estate property owners as they can not only benefit from appreciation in value of the property but also from rising rents.
Potential Economic Headwinds:
Dubai’s real estate market is red hot these days but it does not take long for things to change for the worse. Even though the overall outlook of the real estate market is positive, there are potential economic headwinds that can slow down the economy. This could have a negative impact on the real estate market as people tend to cut back on spending when the economy slows down.
Artificial Intelligence and Property Tech Goes Mainstream
We are already seeing shades of artificial intelligence in property listings but AI will start to play a bigger role in 2024. PropTech is set to disrupt the real estate market in Dubai and completely transform the way people buy and sell real estate properties. With Dubai’s ambitious goal of becoming a market leader in artificial intelligence by 2031, expect some major changes in this area in 2024.
The focus will shift towards delivering a more personalized experience to real estate buyers by giving them access to more custom development and property options. It will change the way prospective real estate buyers interact with the real estate market.
Office Transformation For Post Pandemic Era
COVID-19 pandemic has changed the way we used to work by making remote and hybrid work options go mainstream. 2024 will be the year when real estate developers will adapt to this change by transforming office space to meet the needs of the post pandemic era.
Many real estate developers will try to create a homely environment just like a home office and offer top rated hotel style services. This will encourage remote workers to return back to their offices without feeling that they are in the traditional office environment. The primary focus of developers will shift from traditional work environments to developing office spaces that fuses functionality of home office with top of the line facilities.
Which real estate trend will create the biggest impact in Dubai in 2024? Share it with us in the comments section below.
Arman Ali, respects both business and technology. He enjoys writing about new business and technical developments. He has previously written content for numerous SaaS and IT organizations. He also enjoys reading about emerging technical trends and advances.
