According to a survey released on Wednesday, residential real estate sales in Dubai increased 31% year over year to Dh232 billion in the second half of 2024.
Espace Real Estate’s report solidifies an incredible year of sector expansion. In terms of volume and value, the off-plan market surpassed the secondary market by a considerable margin. Value reached Dh127 billion (up 51% year over year) due to 61,435 off-plan sales (up 74% year over year), which were supported by a thriving secondary market that saw 32,487 transactions (up 15% year over year).
Dubai’s continuous population increase is driving investor hunger, which has led to extraordinarily high activity in the off-plan market. In the second half of the year, the off-plan market currently accounts for 65% of all transactions, up from 61% in the first half.
Ten of the eleven apartment communities and 19 of the 20 villa communities under study saw increases in average costs. Due to high demand and limited supply following the large number of renters who became homeowners, properties in Springs (+26%), Jumeirah Park (+23%), Town Square (+21%), and many other areas saw significant price hikes.
While newer communities like Al Furjan (+26%) receive a boost from buyers seeking value after being priced out of nearby communities, widespread developer renovations and the introduction of new luxury villa offerings in Jumeirah Islands (+26%), Jumeirah Golf Estates (+35%), and Dubai Hills (+27%) have further impacted average sales prices in established communities. Espace Real Estate’s own statistics shows that the number of mortgage leads generated has increased by 111% annually, which helps to facilitate transactions as residents establish lasting roots in Dubai.
Alongside growing sales prices, newer apartment complexes are also seeing an increase in transaction volumes. As buildings were turned over to new owners, the amount of transactions at Emaar Beachfront increased by 34%. In a similar vein, Jumeirah Village Circle (JVC) had a 28% rise in transactions, primarily due to the area’s continuous growth and the arrival of new inhabitants and projects. Notably, JVC’s expansion was further fueled in 2024 by the completion of 24 new projects in the company alone.
With population increase of 65% over the past ten years and 10% over the last three, many new people are joining the demand pool alongside existing inhabitants. Six out of Espace’s top 10 buyer nationalities are from Western European nations, indicating a shift in the report’s most notable buyer demographics.
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.”
The report forecasts additional population growth and the construction of new real estate, with almost 80% of it being flats, showing how reliant the city is on new developments to meet demand. In Q1 2024, a new real estate project was launched every 18 hours, according to Property Monitor.
Off-plan sales volume accounted for 65% of deals in the second half of 2024, with a total value of Dh127 billion.
Transactions in the 20 villa and townhouse communities under study decreased by 9%, while sales prices continued to rise in 19 of them, with Jumeirah Golf Estates (+35%), Arabian Ranches (+27%), and Dubai Hills (+27%) leading the way.
Transaction volume in apartment sales continued to rise (+12%) due to increased availability and price diversity, and prices increased in 10 of the 11 communities that were monitored.
Compared to H2 2023, Espace saw a 30% rise in viewings (8486) and a 10% increase in buyer registrations.
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.
The amount of rental transactions for villas and townhouses fell by 14%, although the volume of rental rentals for apartments fell by 6%. This decline is less severe because of the construction of new buildings in communities like Emaar Beachfront, which saw a 98% fall.
Hot property
In the meantime, Dubai Marina, Downtown Dubai, and Palm Jumeirah have cemented their status as the top three locations for purchasing luxury homes in Dubai for 2024, per statistics from the listings website Dubizzle. Their closeness to well-known monuments and attractions has been credited with increasing their appeal.
When it comes to purchasing and renting luxury flats, Dubai Marina has emerged as the top option. According to Dubizzle search trends, the average sales price in this highly sought-after area has reached Dh2.55 million, while the annual rent has been reported at Dh145,000.
Dubai Hills Estate has remained the most sought-after location for luxury villas, with an average sales price of Dh16.07 million. However, with an average cost of Dh436,000, Al Barsha has emerged as the most popular rental option.
At 7.39%, Al Barari has the best return on investment (ROI) for opulent mansions. With a noteworthy return on investment of 8.48 percent for 2024, Green Community has emerged as the market leader in the luxury apartment class.
With an average sales price of Dh1.12 million and an annual rent of Dh78,000, Jumeirah Village Circle (JVC) was crowned the best place to buy and rent mid-tier apartments.
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.”