More data on Dubai’s property boom in 2024: Dubai’s real estate market saw strong investor activity in 2024, with a 47% y-o-y rise in residential transactions, driving capital value growth, according to the Savills Dubai Residential Market report (pdf). Dubai ranked among the top five in the Savills World Cities Prime Residential Index, with property values rising 2.9% in the first half of 2024. Per-square-foot prices increased 3% for apartments and 8% for villas.

Off-plan sales dominated 68% of total transactions, up from 55% in 2023. Zone 6, covering Jumeirah Village Circle, Damac Hills 2, Al Barari, and Dubai Hills Estate, accounted for 51% of transactions. Business Bay, Jumeirah Lakes Towers, and Dubai Marina also recorded high volumes.

The ready market had a slower year, accounting for 32% of transactions, down from 45% in 2023, as affordability constraints and higher interest rates impacted accessibility. Meanwhile, transactions above AED 5 mn made up 8% of the market.

Apartments were still the most popular: Apartments led sales, accounting for 82% of total transactions, with off-plan sales increasing to 68%. High-demand areas included Jumeirah Village Circle, Business Bay, Dubai Marina, and Meydan One. Villa transactions rose to 18% of the market, with off-plan villa sales increasing to 68% from 45% in 2023. Developers introduced 50k new units, a 25% rise from 2023, while 25k units were completed.

The prime housing segment saw 4.6k transactions priced at above AED 10 mn, marking a 23% y-o-y increase. Luxury villa transactions grew 33%, while high-end apartment transactions rose 5%. Palm Jumeirah, La Mer, and Bluewaters Island commanded the highest per-square-foot rates. Rental rates climbed, with apartments up 16% and villas/townhouses rising 13%. Emerging locations like Al Furjan saw rental spikes of up to 26% due to commercial developments in Dubai South and Expo City.

Looking ahead to 2025, Dubai’s real estate market is expected to maintain growth, driven by investor confidence, off-plan demand, and interest in luxury properties. Market conditions suggest continued opportunities for both end-users and investors as the sector evolves.

ICYMI: Dubai’s real estate sector hit a record AED 761 bn across 226k transactions in 2024, up 36% in volume and 20% in value y-o-y. The sector saw 2.78 mn procedures, a 17% increase, with investments reaching AED 526 bn.

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