Overview of Dubai Real Estate Market Report Q4 2024

dubai real estate market q4 report overview

As the curtains closed on 2024, the fourth quarter proved to be a game changer for Dubai’s real estate market, cementing its position as one of the most exciting property markets in the world.

The quarter saw unprecedented growth, backed by government initiatives, investor sentiment and sustained demand across all property types.

While the market remained attractive to international buyers, local demand surged due to competitive financing options and policies to encourage homeownership.

October 2024 alone saw a record 20,670 transactions, a whopping 71% increase from the same period last year.

The total transaction value was AED 61.5 billion, a new high for the sector. The momentum continued into November and December with strong sales and rising property values.

Off-plan properties in Dubai were the stars of the show, accounting for a big chunk of the transaction value, while secondary market sales also saw healthy growth.

Dubai’s population growth, driven by expats and professionals looking for long term opportunities, was a key factor in the sector’s success.

Government policies such as long term residency visas and Economic Agenda D33 also boosted investor confidence. Institutional investors also made their presence felt with large transactions in high demand areas.

Quarter’s highlights include total transactions beating expectations, off-plan sales reaching new highs and rental prices soaring.

Affordable areas like International City, Al Qusais and Dubai South catered to budget conscious tenants, while luxury properties in Emirates Hills and Palm Jumeirah attracted ultra high net worth individuals.

In total, Dubai’s real estate sector saw transactions of over AED 100 billion in Q4 2024, solidifying its position as a top investment destination. For 2024, Dubai saw 119,800 transactions, a 51% increase from 2023.

This is a testament to investor confidence in the emirate’s growth, its economic policies and the unique lifestyle and business proposition.

The average price per square foot across all property types was AED 1,600, a 10% increase from the same period last year.

With demand from both local and international buyers, Dubai’s real estate market weathered the global economic storm.

This wasn’t limited to sales, the rental market was also busy. Dubai has become a sought-after destination for tenants across all segments, including affordable housing, luxury properties, and short-term rentals, driven by high demand in every category.

With residential, rental and commercial segments all performing well, Q4 2024 had something for everyone in the market.

Table of Contents

Residential Sales Market Performance in 2024

Dubai’s residential sales market set new records in Q4 2024 with 71% year on year growth in transactions in October alone.

The quarter ended with over 20,000 transactions per month, a proof of the city’s continued popularity as a property investment hot spot.

Off-Plan Transactions

Off-plan was the clear winner, driving most of this growth. Off-plan sales transactions increased by 109% compared to October 2023 with a total value of AED 27.7 billion.

This was driven by demand for new projects in prime areas and innovative community concepts with futuristic amenities.

Secondary Market Transactions

The secondary market also performed well with 7,140 transactions in October, 27.5% year on year growth. Secondary market transactions value was AED 33.7 billion as buyers looked for ready to move in properties.

This shows how completed projects are attractive to end users and investors looking for immediate rental income or personal use.

This dual growth in off-plan and secondary markets shows there are opportunities for buyers and investors in Dubai.

Top Residential Areas for Buyers in Dubai

International City: Affordable and accessible, International City was the go to destination for budget buyers. Studios were available from AED 300,000 and 1 bedroom apartments from AED 450,000.

Jumeirah Village Circle (JVC): Modern apartments at competitive prices attracted young professionals and families. 1 bedroom units averaged AED 650,000 with plenty of amenities to boot.

Dubai South: A new hub for affordable housing, Dubai South had properties with futuristic infrastructure. Studios started at AED 350,000, making it perfect for first time buyers.

Al Furjan: Modern amenities with affordability. Al Furjan was great for first time buyers and renters.

Residential Property Trends in Dubai

Let’s put some lights on the residential property trends in Dubai:

Apartments

The apartment market performed well across all segments:

Average rental rates for apartments increased by 19.1% compared to Q4 2023, Dubai Marina and Business Bay saw even higher rental growth.

Prime apartments in Downtown Dubai experienced a price surge to AED 2,200 per square foot, driven by sustained demand from expats and investors.

Villas and Townhouses

Townhouses and villas for sale were the most in demand property types with prices growing:

The average villa price increased by 25% year on year as buyers preferred spacious homes in family friendly communities.

High end villa communities like Al Barari and Arabian Ranches saw a 30% increase in transactions which further pushed up the prices.

Top Areas in Dubai to Buy Property

Jumeirah Village Circle (JVC): Affordable and connected, JVC was popular with young professionals and first time buyers. Modern apartments and townhouses at competitive prices were in high demand.

Dubai Hills Estate: With its vast green spaces and family friendly amenities, Dubai Hills was the go-to destination for villa buyers.

Dubai Marina and Downtown Dubai: These iconic areas continued to lead luxury apartment sales, international buyers looking for waterfront and city views.

The luxury segment saw unprecedented growth as high net worth individuals looked for bespoke homes. Ultra luxury villas in Palm Jumeirah and Emirates Hills were selling above AED 100 million, showing the demand for exclusivity and luxury.

Luxury Sales

High end transactions in Palm Jumeirah and Emirates Hills were the top performers in the luxury segment.

Properties above AED 10 million made up a large chunk of sales, driven by branded residences and high-end amenities.

Demand Outstrips Supply

Despite the demand, ultra luxury homes (only 9 homes above $50 million on the market) created a sellers market.

Buyers were looking for properties with concierge services, private beaches and proximity to world class facilities.

Sales Volume and Value

Residential sales exceeded expectations in Q4 2024 driven by off plan and secondary market sales.

Off-Plan: October 2024 saw AED 27.7 billion in off plan sales, 109% up year on year.
Secondary Market: Transactions were AED 33.7 billion, 27.5% up from October 2023.

Trends

Luxury is in Demand: Luxury properties in Palm Jumeirah and Dubai Hills Estate were the top performers in high value transactions. Branded residences and bespoke services saw huge demand.

Affordable Housing: Jumeirah Village Circle (JVC), Al Furjan and Dubai South emerged as hotspots for budget buyers with modern amenities at competitive prices.

Sustainability and Smart Homes: Developers focused on green buildings and smart homes to attract eco-conscious buyers.

Rental Market

The rental market in Dubai was busy in Q4 2024 and catered to a wide range of tenants, expats, families and professionals.

A notable trend was the increase in demand for furnished apartments, especially among short term tenants and business travelers. 65% of apartment renters opted for furnished properties, showing the demand for convenience and flexibility.

However, unfurnished apartments still appeal to long term tenants who want to personalize their living spaces.

In the villa and townhouse segment, 53% of tenants preferred unfurnished, 46% opted for furnished, families and long term residents.

The rental market followed the sales market and saw rents increasing across most areas. Apartments and villas saw big price increases due to high demand and limited supply.

Apartments: Rents for apartments rose by 10-15% year on year, with prime areas like Dubai Marina, Business Bay and Downtown Dubai leading the charge.

Villas: Families were looking for larger homes and drove villa rents up by 20-25% in areas like Arabian Ranches and The Springs.

Several factors contributed to this trend, population growth, limited supply in key areas and increased demand for fully furnished properties.

Tenant Preferences Shift

Tenants are now favouring furnished properties, especially in prime locations. Short term rentals and co living spaces are popular among young professionals and digital nomads, in line with Dubai’s vision to be a global work from anywhere hub.

Commercial Real Estate Performance

The commercial sector continued its recovery, fueled by Dubai’s role as a global business hub. Co-working spaces gained traction as companies embraced hybrid work models, while traditional office spaces experienced stable demand.

Key Trends in Q4 2024

1. Flexible Workspaces:

Demand for co-working spaces rose by 35%, reflecting the evolving nature of work environments. Areas like Business Bay and Jumeirah Lake Towers (JLT) emerged as leading hubs.

2. Grade A Offices:

Premium office spaces in Downtown Dubai and DIFC attracted multinational companies, while secondary spaces offered affordable options for SMEs.

3. Hospitality and Retail

The hospitality sector experienced a strong rebound, with high occupancy rates in hotels and serviced apartments. Retail spaces in prime locations also witnessed increased foot traffic, driven by the holiday season and major events.

Emerging Hotspots

Several areas have emerged as preferred choices for both buyers and tenants, reflecting shifting preferences and investment patterns.

For Apartment Ownership:

Dubai Marina
Downtown Dubai
Jumeirah Village Circle (JVC)
Business Bay
Palm Jumeirah

For Villa/Townhouse Ownership:

Dubai Hills Estate
Al Furjan
Palm Jumeirah
Dubai Land
Mohammed Bin Rashid City

For Apartment Rentals:

Dubai Marina
Downtown Dubai
Business Bay
Jumeirah Village Circle (JVC)
Jumeirah Lake Towers

For Villa/Townhouse Rentals:

Jumeirah
Dubai Hills Estate
Damac Hills 2
Al Barsha
Umm Suqeim

Future Outlook

To meet rising demand, Dubai has significantly increased its supply of residential properties. The city plans to deliver 28,700 new villas by 2025, with many of these projects targeting the luxury segment.

However, the current supply still falls short of the growing appetite for ultra-luxury properties, creating opportunities for further development in this niche.

On the affordable housing front, areas like Deira, Bur Dubai, and Dubai South continue to expand, providing competitively priced options for middle-income residents.

Predicted Trends

Sustainability and Green Projects: Developers will prioritize eco-friendly buildings to align with global green standards.

Expansion of Affordable Housing: Areas like Al Furjan and Dubai South will see an increase in budget-friendly housing projects.

Digital Transformation: The integration of blockchain technology and AI in property transactions will enhance efficiency and transparency.

Overall Rundown Summary of Q4, 2024 Real Estate Report

1. Record-Breaking Transaction Volumes and Values

Dubai’s real estate market surpassed expectations in Q4 2024, with transactions crossing AED 100 billion—a monumental achievement.

Transaction Growth: Total property transactions reached 119,800 for the year, marking a 51% increase compared to 2023. This underscores a robust appetite for real estate investment across both residential and commercial sectors.

Value Comparison: The Q4 transaction values reflected an annualized growth rate of 15%, further solidifying Dubai’s appeal as a safe and lucrative investment destination.

2. Price Trends and Market Segmentation

Dubai experienced steady price increases across various property segments, reflecting demand-supply dynamics and heightened investor confidence.

Average Price per Square Foot: In Q4 2024, the average price per square foot rose by 10% to AED 1,600 compared to AED 1,450 in Q4 2023.

Luxury Properties: Prime areas like Downtown Dubai, Palm Jumeirah, and Dubai Hills Estate saw even higher appreciation, with price growth reaching 15%-20% in some locations.

Affordable Housing: Communities such as International City and Discovery Gardens recorded moderate increases of around 5%-8%, ensuring affordability for middle-income buyers and renters.

3. Off-Plan vs. Secondary Market

Off-Plan Dominance: Off-plan properties remained the preferred choice, contributing to over 55% of total transactions. This trend was driven by flexible payment plans and new project launches by leading developers.

Secondary Market: While off-plan dominated, the secondary market saw a 20% increase in activity year-over-year, reflecting growing interest in ready-to-move properties among end-users.

4. Rental Market Dynamics

Dubai’s rental market remained competitive, with rising demand pushing rental prices higher.

Apartments: Average rents for apartments increased by 19.1% compared to Q4 2023. High-demand areas such as Dubai Marina and Business Bay saw significant rental appreciation, driven by an influx of expatriates.

Villas: Villa rentals experienced a higher surge, with an annual increase of over 25%, particularly in communities like Arabian Ranches and Al Barari, reflecting the demand for larger spaces among families and remote workers.

5. Supply and New Developments

To meet the growing demand, Dubai intensified its development pipeline, particularly focusing on high-end properties.

Villas Under Construction: Close to 9,000 villas are set to be completed by the end of 2024, with an additional 19,700 villas planned for 2025.
Apartment Supply: Apartment stock also grew, with over 20,000 new units added during Q4 alone. Communities like Jumeirah Village Circle and Meydan accounted for a significant share of these completions.

Demand-Supply Gap: Despite the increase in supply, demand for upscale and luxury homes exceeded expectations, keeping prices buoyant in prime areas.

6. Key Economic Indicators and External Factors

The real estate market’s robust performance aligns with Dubai’s broader economic growth and favorable policies:

Economic Growth: The UAE’s GDP growth forecast of 4.5% in 2024 provided a stable economic backdrop, boosting investor sentiment.

Investor-Friendly Policies: Initiatives like the Golden Visa, 10-year residency permits, and 100% foreign business ownership attracted global investors, particularly from Europe, Asia, and the Americas.

7. Investor Demographics and Preferences

Dubai’s real estate market continued to attract diverse investors:

International Buyers: Foreign nationals accounted for nearly 40% of transactions, with a marked increase in interest from European and Asian investors. The weak Euro and favorable exchange rates further fueled European investment.

Local Buyers: Emirati buyers focused predominantly on the luxury villa segment, accounting for 25% of villa transactions in prime areas.

Shift in Preferences: Investors favored properties with sustainable features, reflecting a growing focus on eco-friendly developments and energy-efficient homes.

8. Comparative Insights: Q4 2024 vs. Previous Quarters

Quarterly Growth: Compared to Q3 2024, transaction volumes in Q4 increased by 12%, highlighting seasonal trends and the conclusion of high-profile events like the Dubai Property Show.

Price Comparison: The price per square foot rose by 5% quarter-on-quarter, reflecting sustained demand amidst limited supply in high-demand areas.

9. Top-Performing Areas

The following areas emerged as hotspots in Q4 2024:

Luxury Segment: Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island led the luxury segment with high transaction volumes and double-digit price appreciation.

Affordable Segment: Dubailand, International City, and Al Furjan saw strong demand, particularly among middle-income expatriates.

Commercial Properties: Business Bay and Jumeirah Lake Towers remained top choices for commercial spaces, driven by the influx of startups and multinational corporations.

10. Future Outlook

The outlook for Dubai’s real estate market remains optimistic:

Growth Projections: Analysts forecast a Compound Annual Growth Rate (CAGR) of 8.00% between 2024 and 2029, reflecting sustained demand and favorable market conditions.

Mega Projects: Upcoming mega projects like Dubai South, Dubai Creek Harbour, and MBR City are expected to drive growth in both the residential and commercial segments.

Sustainability Focus: With a growing emphasis on green building practices, developers are likely to introduce more eco-friendly projects to meet buyer preferences and regulatory standards.

The outlook for Dubai’s real estate market remains highly optimistic as we head into 2025. Initiatives like the Dubai Economic Agenda D33, which aims to double the city’s economy by 2033, and the ongoing Real Estate Sector Strategy 2033, are set to drive sustained growth.

With continued investments in infrastructure, transparency, and innovation, Dubai is well-positioned to attract even more global interest.

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