Dubai’s real estate market broke records in 2024 with an incredible performance, demonstrating its tenacity and appeal once more. In comparison to 2023, the emirate saw a 36% increase in sales volume and a 27% increase in value, with total transactions reaching 180,900, valued at AED 522.1 billion. These figures demonstrate Dubai’s enduring allure to international investors looking for profitable prospects in a flourishing market. Dubai’s strategic initiatives and investor-friendly environment have contributed to its growing reputation as a global real estate hub.
Record Growth in Transactions
The increase in transactions highlights Dubai’s allure to global investors, which is fuelled by its cutting-edge infrastructure, robust regulatory environment, and advantageous location. The rate of increase in expansion is co related with the off-plan, residential and commercial segments. Taking the example, sales volume in the month of May broke all the previous records, with AED 22.7 billion transactions by only off-plan domain. The demand was then further powered by competitive pricing in Dubai in comparison to other global cities. Dubai is a very profitable option for international investors, as a $1 million investment secures 980 square feet, which is significantly more than in London or New York.
Rise in Off-Plan Properties
This remarkable growth was largely attributed to the primary market, which witnessed a sharp increase in demand for off-plan properties and new developments. Developers’ first-time sales increased 30% to $91.1 billion, demonstrating the consumer’s increasing desire for new development. In this sector, the volume of transactions increased by 51% to 119,800 units, which is indicative of rising developer activity and buyer confidence.
Strong Performance in Secondary Market
There were $51.2 billion in resales in the secondary market, which is still very strong and up 21% from the previous year. Additionally, resales saw a 14% increase in transaction volume, reaching 61,100 units. Despite high rental yields attracting investors, the secondary market’s impressive performance indicates a shift towards ready-to-move-in properties. Additionally, some areas have become more desirable through improvements in their infrastructure.
Growth in Investment Possibilities
Dubai is expected to achieve new heights in future especially in the areas of Jebel Ali, Nad Al Sheba, and Dubai South. A suitable amount of increase is being predicted in these areas as the focus is shifted from centres like Downtown and Business Bay. One of the mentionable example is Dubai Production City, that has AED 1.5 billion projects like Deyaar’s Park Five. This competitive project features flexible payment plans, smart home technology and a strong focus is made on modern living, wellness and community involvement.
Reach High-Net-Worth People
A 78% increase in millionaires over the past ten years, Dubai continues to draw high-net-worth individuals (HNWIs). The city’s cosmopolitan lifestyle, safe environment, and business-friendly atmosphere are the main drivers of this migration. Dubai has surpassed cities like New York and London in terms of the quantity of homes sold for $10 million or more due to the strong demand for luxury real estate.
Impressive Development in Property Sector
The year also saw impressive growth across property sectors. Apartment sales led the way, with 141,168 units sold, worth $70.9 billion—a 42% increase compared to 2023. Sales of villas increased by 21.1% to 30,938 units, valued at $44.7 billion. The value of commercial real estate transactions increased by 10.1%, with 4,304 units selling for $2.6 billion, and 4,352 plots selling for $23.5 billion, a 2.6% increase.
Emerging Fields Pick Up Steam
Al Barsha South 4 was the best-performing area in the primary market, with 12,878 first-time sales totalling $3.7 billion. In terms of sales value, Business Bay was in the lead with 6,888 transactions totalling $5.7 billion. Other developing neighbourhoods like Wadi Al Safa 5 and Madinat Al Mataar gained popularity, indicating a growing trend towards integrated communities and suburban living that reflects changing end-user and investor preferences.
Primary Market: The Star Performer
Off-plan sales dominated the landscape, and the primary market was at the forefront. While sales value increased by 30% to AED 334.1 billion, transactions in this segment increased by 51% to AED 119,800. The average cost per square foot increased to AED 1,600, a 10% increase.
Top 10 Performing Areas in the Primary Market:
- Al Barsha South 4 – 12,878 transactions worth AED 13.5 billion
- Business Bay – 6,888 transactions worth AED 21.1 billion
- Wadi Al Safa 5 – 6,602 transactions worth AED 13.6 billion
- Madinat Al Mataar – 6,254 transactions worth AED 17.0 billion
- Hadaeq Sheikh Mohammed Bin Rashid – 5,246 transactions worth AED 13.4 billion
- Madinat Hind 4 – 5,152 transactions worth AED 8.4 billion
- Madinat Dubai Almelaheyah – 4,818 transactions worth AED 12.7 billion
- Al Merkadh – 4,474 transactions worth AED 6.2 billion
- Jabal Ali 1 – 4,335 transactions worth AED 6.7 billionBukadra – 4,215 transactions worth AED 9.9 billion
Secondary Market: Steady and Strong
The average price per square foot increased by 12% to AED 1,300, driven by high rental yields and persistent demand for ready-to-move-in properties. The secondary market also showed strong growth, with re-sales rising by 21% to AED 188.1 billion and transaction volumes rising by 14% to 61,100.
Top 10 Performing Areas in the Secondary Market:
- Al Barsha South 4 – 12,878 transactions worth AED 13.5 billion
- Business Bay – 6,888 transactions worth AED 21.1 billion
- Wadi Al Safa 5 – 6,602 transactions worth AED 13.6 billion
- Madinat Al Mataar – 6,254 transactions worth AED 17.0 billion
- Hadaeq Sheikh Mohammed Bin Rashid – 5,246 transactions worth AED 13.4 billion
- Madinat Hind 4 – 5,152 transactions worth AED 8.4 billion
- Madinat Dubai Almelaheyah – 4,818 transactions worth AED 12.7 billion
- Al Merkadh – 4,474 transactions worth AED 6.2 billion
- Jabal Ali 1 – 4,335 transactions worth AED 6.7 billion
- Bukadra – 4,215 transactions worth AED 9.9 billion
Apartments, Villas, and Commercial Properties Shine
The most popular investment was apartments, with sales of 141,168 units valued at AED 260.6 billion, up 42% year over year. Villas came in second with a 21.1% rise to AED 164.1 billion in 30,938 transactions. Land plots saw 4,352 transactions totalling AED 86.5 billion, while commercial real estate saw 4,304 units sold for AED 9.7 billion.
Strategic Vision for the Future
The Dubai Real Estate Sector Strategy 2033 sets lofty targets, such as increasing transaction volumes by 70% and doubling the sector’s GDP contribution. Sustainability, openness, and innovation are given top priority in this vision, which is in line with Dubai’s 2040 Urban Master Plan. Projects like the Real Estate Evolution Space (REES) use digital and artificial intelligence (AI) to improve customer experiences and expedite processes.
Sustainability and Challenges
Dubai is on the lookout for speculative bubbles even as the market is booming. The city guarantees market stability over the long run by taking a balanced approach, which includes limiting property speculation to 20%. Initiatives in urban planning and affordable housing programs also contribute to this sustainable growth. Through its record-breaking performance and forward-thinking outlook, Dubai’s real estate market leads the world in real estate investment. The emirate is well-positioned for future success with strong strategies, a wide range of offerings, and a dedication to sustainability, solidifying its position as a top real estate destination for many years to come.
