Dubai: Real estate prices have been rising for the 15th consecutive quarter, with the affordable housing segment leading the way.

Villa owners in Dubai are actively renovating old properties and reselling them at significantly inflated prices to meet the growing demand. As of May 12, 2024, property prices in the city have risen once again, now for the 15th consecutive quarter. The main factor behind this growth has been the availability of affordable and mid-range residential areas, such as Discovery Gardens, Sports City, and Dubailand, where apartments have shown the highest price increases. The growing interest from local residents and foreign investors keeps prices high.

“There are currently no signs of a slowdown in capital price growth, as housing prices have continued to rise for 15 consecutive quarters. So far, housing prices have increased by”20 percentcompared to the previous year and on66 percent“above the level of the first quarter of 2020, which was before the Covid-19 pandemic,” noted Pratyusha Gurapu, director and head of research and consulting at Cushman & Wakefield Core.

Gurapu also added that the increase in apartment prices has been moderate, especially in primary sub-markets such as Palm Jumeirah, City Walk, Downtown Dubai, and Dubai Marina, where price growth is currently limited.20 percentOn an annual basis. The recovery of the real estate market, which began after the Covid-19 pandemic, continues into 2024. Prices remain more affordable compared to most cities in the world, attracting a significant number of investors. With rising rental prices due to the influx of foreign labor into the country, tenants are slowly becoming property owners.

"Affordable and average apartments, due to the low starting price level, showed a sharper increase.

Haider Tuwaim, director and head of the real estate research department at ValuStrat, reported an increase in capital prices for24.7 percentcompared to last year in the first quarter. According to him, the areas that showed particularly high results were Discovery Gardens, The Greens, Palm Jumeirah, The Views, Town Square, Al Quoz Fourth, and Dubai Production City. According to ValuStrat data, the market is expected this year46,558 new housing unitsThe total number of completed projects at the end of the first quarter is5,770 apartmentsand1,038 villaswhat corresponds15 percentpreliminary estimates for the entire year of 2024. Currently, approximately86,000 apartmentswhich are expected to be completed by 2028.

Renovating old villas with the aim of reselling them at inflated prices.

According to data from Cushman & Wakefield Core, most villa areas have recorded an increase in sale prices of more than20 percentCompared to the previous year, there has been the largest increase in prices in Jumeirah Village Circle, The Lakes, and Jumeirah Park. "One of the factors contributing to the rise in villa prices, especially in older areas like The Lakes and Jumeirah Park, is the trend of renovating and reselling properties at clearly inflated prices, which in turn raises the average price in the region. These areas are characterized by their central location, proximity to well-developed schools and amenities, as well as spacious layouts, which allows for significant premiums to be set and achieved after renovations," Gurapu added.

Haider Tuayma noted that villas remain resilient with rising prices in29.6 percentover the year, reaching the highest villa prices in the last ten years. According to ValuStrat, there are currently about21,230 villasthat are due to be submitted in 2024.