Dubai real estate saw massive increase last year on back of a surge in off-plan property sales. Dubai’s residential real estate market experienced an exceptional year in 2024, driven by strong investor confidence and increasing demand for high-quality properties.
According to the latest report by Savills Middle East, the sector recorded unprecedented transaction volumes, with a 47 per cent year-on-year increase, reflecting the emirate’s growing appeal to high-net-worth individuals and global investors.
This growth was underpinned by a surge in off-plan sales, which accounted for 68 per cent of all transactions, a significant rise from 55 per cent in 2023.
Dubai real estate growth
Developers launched more than 50,000 units throughout the year, representing a 25 per cent increase compared to 2023, to meet this rising demand.
High-quality projects from reputable developers often sold out within weeks, driven by attractive payment plans and strong investment potential.
Zone 6, which includes areas such as Jumeirah Village Circle, Dubai Hills Estate, and Al Barari, led the market, accounting for 51 per cent of all transactions.
Established submarkets like Dubai Marina, Business Bay, and Jumeirah Lakes Towers also demonstrated strong activity, highlighting the continued demand for accessible, well-located properties.
Apartments dominated the market, contributing to 82 per cent of all transactions. Off-plan apartment sales accounted for 68 per cent of these, up from 58 per cent in 2023.
Notable launches included City Walk Northline by Meraas, Ocean Cove by Emaar, and Ghaf Woods by Majid Al Futtaim.
Villa transactions comprised 18 per cent of total sales, with significant demand concentrated in Zone 6. Under-construction villas accounted for 68 per cent of villa transactions, compared to 45 per cent in 2023, indicating a rising preference for new projects in locations like Damac Hills 2, The Valley, and Dubai South.
Luxury housing saw a remarkable rise, with more than 4,600 units priced above AED10m ($2.7m) transacted in 2024, a 23 per cent year-on-year increase.
The villa segment outperformed apartments, with luxury villa transactions increasing by 33 per cent, compared to a 5 per cent rise in the apartment segment.
Premium areas like Palm Jumeirah, La Mer, and Jumeirah Bay Island commanded the highest prices per square foot, reflecting their enduring appeal to high-net-worth buyers.
Dubai’s rental market also witnessed notable growth in 2024, driven by economic expansion and political stability. Apartment rents increased by 16 per cent, while villa and townhouse rents rose by 13 per cent.
Emerging submarkets, such as Al Furjan, experienced rental spikes of up to 26 per cent, highlighting the city’s evolving residential landscape.
Andrew Cummings, Head of Residential Agency at Savills Middle East, said: “Dubai’s residential market continues to grow from strength to strength, driven by a steady stream of international investors, end-users, and a strong pipeline of high-quality projects.
“The emirate has cemented its reputation as a global hub for luxury living and investment opportunities, catering to a wide spectrum of buyer profiles. Over the past year, we’ve achieved significant milestones, including landmark sales in Tilal Al Ghaf and Palm Jumeirah, as well as major land deals”.
Looking ahead, Dubai’s residential market is poised for continued growth in 2025. Trends such as strong investor confidence, rising demand for off-plan properties, and the increasing traction of luxury housing are expected to persist.
Developers are likely to continue delivering high-quality projects, offering unique opportunities for investors and end-users to capitalize on Dubai’s growth and development.
Source of Article and all Credits to : Arabian Business
