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).
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).
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.
The population has grown by 65% over the past ten years and by 10% over the last three, meaning that many new inhabitants are joining the demand pool alongside existing residents. Given that six of Espace’s top ten buyer nationalities are from Western European nations, the research shows a shift in the major buyer demographics.
“Four of these countries rank among the top ten globally for national GDP, underscoring Dubai’s growing reputation as a magnet for global wealth,” stated John Lyons, managing director of Espace Real Estate. This pattern illustrates Dubai’s ongoing appeal to European purchasers following the COVID-19 pandemic, as the city’s outstanding lifestyle, safety, and robust capital investment returns have attracted them to the city.
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.
Rental volume falls
In most communities, average rents in the rental market kept rising. “If they have the financial means, many tenants choose homeownership due to high rental costs, a shortage of available rental properties, reasonably priced mortgage products, and continuous population growth,” the Espace survey stated.
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 flats. “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,” stated Haider Ali Khan, CEO of Dubizzle and Dubizzle Group MENA
The development of freehold regions and the updated property visa options are two examples of the government’s proactive measures that are undoubtedly responsible for this sharp increase. The strong economic development of Dubai and the launch of significant infrastructure projects like the Al Maktoum Airport and the Dubai Metro Blue Line suggest that this momentum is unlikely to slow down very soon.
Real estate is in greater demand than ever before, with off-plan properties in particular attracting previously unheard-of levels of interest. By providing thorough listings of off-plan developments, including “Verified Properties,” across all price points—affordable, mid-tier, and luxury—Dubizzle, the top real estate marketplace in the United Arab Emirates, is dedicated to thriving. At Dubizzle, we take pride in fostering this expansion and enabling everyone to make wise choices.
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