In the second half of 2024, residential real estate sales in Dubai climbed 31% year over year to Dh232 billion, according to a poll published on Wednesday.
The study from Espace Real Estate confirms an amazing year of industry growth. The off-plan sector significantly outperformed the secondary market in terms of volume and value. Due to 61,435 off-plan sales (up 74% year over year) and a robust secondary market with 32,487 transactions (up 15% year over year), the value reached Dh127 billion (up 51% year over year).
Due to investor appetite fueled by Dubai’s ongoing population growth, the off-plan market is experiencing exceptionally high activity. The off-plan market now makes up 65% of all transactions in the second half of the year, up from 61% in the first half.
Average costs increased in 19 of the 20 villa communities and 10 of the 11 apartment communities that were the subject of the study. Property prices in Springs (+26%), Jumeirah Park (+23%), Town Square (+21%), and many other locations experienced strong increases due to high demand and limited supply after many tenants became homeowners.
Average sales prices in established communities have also been impacted by widespread developer renovations and the introduction of new luxury villa offerings in Jumeirah Islands (+26%), Jumeirah Golf Estates (+35%), and Dubai Hills (+27%). However, newer communities like Al Furjan (+26%) benefit from buyers looking for value after being priced out of nearby communities. As residents develop long-lasting roots in Dubai, Espace Real Estate’s own figures reveal that the number of mortgage leads generated has climbed by 111% annually, aiding in the facilitation of transactions.
Newer apartment complexes are experiencing a rise in transaction volumes in addition to rising sales prices. Emaar Beachfront had a 34% rise in sales as structures were transferred to new owners. Similarly, Jumeirah Village Circle (JVC) had a 28% increase in transactions, mostly as a result of the neighborhood’s ongoing development and the influx of new residents and developments. Notably, JVC completed 24 new projects in 2024 alone, which further propelled the company’s growth.
Many new people are joining the demand pool alongside existing residents, as evidenced by the population growth of 65% over the last ten years and 10% over the last three. Six of the top 10 buyer nationalities on Espace are from Western European countries, indicating a shift in the most notable buyer demographics in the report.
John Lyons, managing director, Espace Real Estate said: “Four of these nations rank among the top ten globally for national GDP, underscoring Dubai’s growing reputation as a magnet for global wealth. This trend reflects the sustained post-Covid appeal of Dubai to European buyers who are drawn by the city’s exceptional lifestyle, safety and strong returns on capital investment.”
Nearly 80% of the new real estate being built will be apartments, indicating how dependent the city is on new constructions to meet demand. The research also projects more population increase. According to Property Monitor, a new real estate project was introduced every 18 hours in Q1 2024.
With a total value of Dh127 billion, off-plan sales volume made up 65% of transactions in the second half of 2024.
While sales prices continued to grow in 19 of the 20 villa and townhouse communities under consideration, with Jumeirah Golf Estates (+35%), Arabian Ranches (+27%), and Dubai Hills (+27%) leading the way, transactions in these communities fell by 9%.
Due to more availability and price diversity, the amount of apartment sales transactions increased by 12%, while prices rose in 10 out of the 11 communities under observation.
Espace experienced a 10% increase in buyer registrations and a 30% increase in viewings (8486) compared to H2 2023.
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Rental volume falls
In the rental market, average rents continued to soar in most communities. “High rental prices, limited rental supply, affordable mortgage products and ongoing population growth encourage many tenants to opt for homeownership if they are in the financial position to do so,” the Espace report said.
While the volume of rental rentals for apartments decreased by 6%, the number of rental transactions for townhouses and villas decreased by 14%. The creation of new structures in areas like Emaar Beachfront, which suffered a 98% reduction, has made this loss less severe.
Hot property
Meanwhile, according to data from the listings website Dubizzle, Palm Jumeirah, Downtown Dubai, and Dubai Marina have solidified their positions as the top three areas in Dubai for buying luxury houses in 2024. It has been said that their proximity to famous landmarks and attractions has made them more alluring.
Dubai Marina has become the most popular place to buy and rent luxury apartments. The average selling price in this extremely desirable neighborhood is Dh2.55 million, according to Dubizzle search trends, while the annual rent is Dh145,000.
With an average sales price of Dh16.07 million, Dubai Hills Estate continues to be the most sought-after area for luxury homes. However, Al Barsha has become the most popular rental option, with an average price of Dh436,000.
Al Barari has the highest return on investment (ROI) for lavish residences, at 7.39%. Green Community has become the market leader in the premium apartment class with a notable return on investment of 8.48 percent for 2024.
Jumeirah Village Circle (JVC) was named the finest area to buy and rent mid-tier flats, with an average sales price of Dh1.12 million and an annual rent of Dh78,000.
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CEO of dubizzle and Dubizzle Group MENA, Haider Ali Khan, said: “Dubai’s real estate market has truly outdone itself, hitting new heights in 2024, with over Dh500 billion in business between November 2023 and November 2024. It’s clear that this dramatic growth is driven by the government’s proactive initiatives including the revised property visa offerings and expansion of freehold areas. Considering the robust economic progress of Dubai and the announcement of major infrastructure projects like the Dubai Metro Blue Line and Al Maktoum Airport, this momentum is unlikely to slow down any time soon. The demand for properties is at an all time high with the off-plan sector in particular showing unprecedented interest. As the UAE’s leading real estate platform, at dubizzle, we remain committed to supporting this growth by offering comprehensive listings of off-plan developments ‘including ‘Verified Properties’’ across all segments—affordable, mid-tier and luxury. At dubizzle, we’re proud to fuel this growth while empowering everyone to make informed decisions.”
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