According to a report, the Dubai real estate market performed well in the third quarter of 2024 in both the residential and commercial sectors.
According to a report by Engel & Völkers Middle East, which is renowned for providing premium residential and commercial real estate services, Dubai’s real estate market continues to draw interest from around the world, with combined residential and commercial sales for the quarter totaling AED138.8 billion ($37.79 billion).
The commercial market added AED23.2 billion in sales, representing a 28% increase in the total transaction value, while residential transactions increased 40.8% year over year, contributing AED115.6 billion.
Strong economic fundamentals, increased foreign investment, and the emirate’s allure as a location for wealthy people and companies are the main drivers of Dubai’s booming real estate market. The UAE’s economy is expected to grow by 3.9% in 2024 and 6.2% in 2025, with major industries like real estate, tourism, and international trade driving this momentum.
“Dubai’s real estate market continues to demonstrate its resilience and appeal to a global audience, as both residential and commercial sectors are experiencing significant growth. The city’s strategic vision, business-friendly environment, and world-class infrastructure continue to attract investors from around the world,” said Daniel Hadi, CEO of Engel & Völkers Middle East.
“With demand for premium properties at an all-time high, and the government’s economic diversification initiatives bolstering growth in key sectors, we anticipate continued upward momentum across all real estate segments.”
The leading demand is off-plan
With total transaction volumes rising 40.8% year over year to AED115.6 billion, Dubai’s residential sector reported impressive results in Q3. As a result of new projects and increased investor interest, off-plan properties made up more than 65% of all transactions. Over 30,000 units of off-plan units were sold in Q3 alone, a 62.5% increase over the same period the previous year. New construction in neighborhoods like Dubai Creek Harbour and Sobha Hartland II also garnered a lot of interest, but communities like Jumeirah Village Circle, Dubai Hills Estate, and Business Bay set the standard.
Transaction volumes increased by 12.8% in the secondary market, indicating the ongoing demand for properties that are ready to move into. Despite price increases exceeding 15% in many areas, villa and townhouse sales soared in Emirates Living, Al Furjan, and Mohammed Bin Rashid City, while apartment sales in key communities like Jumeirah Village Circle, Dubai Marina, and Business Bay were strong.
Luxury market: A year that breaks records is imminent
Dubai’s luxury real estate market is still on course for a record-breaking year, even though transactions over AED10 million fell by just 6% from Q3 2023. The renowned upscale neighborhood of The Palm Jumeirah in Dubai saw 110 transactions totaling more than AED 10 million, three of which exceeded AED 200 million. The sale of a penthouse for AED 275 million was one of these, demonstrating the ongoing demand for ultra-luxury real estate.
Demand remained high in other well-known luxury communities like Mohammed Bin Rashid City and Dubai Hills Estate, while newer neighborhoods like The Oasis and Palm Jebel Ali demonstrated the expanding appeal of Dubai’s luxury market by drawing wealthy people looking for upscale real estate in the city.
Strong demand in the commercial market
In Q3, the commercial real estate market saw remarkable growth, with sales of AED23.2 billion and a 28% increase in transaction value year over year. Strong demand for upscale commercial real estate is indicated by the 12.6% increase in office sales and the 16.8% increase in retail transactions. According to the report, prime locations like Business Bay and Jumeirah Lakes Towers (JLT) continued to be the most popular options for office space, highlighting Dubai’s allure as a major international business hub.
Due to rising prices for high-quality assets, transaction values have increased despite a slight 6.5% decline in overall commercial sales volumes. Strong demand in the industrial sector was also reflected in the leasing market’s rising rent trends, with office and retail rents rising by 4% and warehouse rents rising by 19%.
Demand in the leasing market is still strong
Due in part to the city’s expanding population, the leasing market in Dubai is still thriving. Rental transactions are concentrated in communities such as Dubai Marina, Jumeirah Village Circle, and Dubai Silicon Oasis. Due to persistent demand, rental prices are still rising even though more and more tenants are choosing to purchase or extend their leases; in many areas, average rents have increased by double digits.
A bright future
The UAE economy is expected to grow by 3.9% in 2024 and 6.2% in 2025, which puts Dubai’s real estate market in a strong position for future growth. According to the report, government efforts to diversify the economy—especially in important industries like technology, healthcare, and green energy—should increase demand in both the residential and commercial markets. – Trade Arabia
