Engel & Völkers Middle East reports 15.4% residential and 24.2% office sales surge in November
Affordable Properties Dominate Dubai’s Real Estate Market
Dubai’s real estate market is witnessing a significant shift, with affordable properties increasingly becoming the focal point for homebuyers. As more people aspire to call the emirate their home, the demand for budget-friendly housing options has surged, according to a recent report by Engel & Völkers Middle East, a leading authority in premium residential and commercial real estate services.
The report revealed that properties priced under AED 1 million accounted for 32.2% of all sales transactions in November, a notable rise from 26.7% in October. Studios and one-bedroom apartments have become particularly popular, reinforcing apartments as the top choice for buyers. In fact, apartments made up over 84% of the total sales during this period.
Among the top-performing areas, Jumeirah Village Circle (JVC) led the way with 1,035 units sold, followed by Jumeirah Village Triangle (670 units) and Business Bay (423 units).
Resilience and Growth in Dubai’s Residential Sector
November continued to highlight the remarkable resilience and robust growth of Dubai’s real estate sector. The residential market achieved a 15.4% year-over-year increase, with 12,695 sales transactions recorded during the month. While this represents a slight cooldown from October’s record-breaking performance, it underscores the sector’s sustainable upward trajectory.
Average property prices experienced a modest 0.38% increase in November, reflecting a steady and balanced market. Engel & Völkers emphasized that this growth is a testament to the market’s adaptability and long-term stability.
Commercial Real Estate: A Strong Contender
Dubai’s commercial real estate sector also showcased impressive growth, with total sales values reaching AED 9.2 billion — a 3.1% year-over-year increase. Office sales led the charge with a 24.2% surge in transactions, complemented by a remarkable 31.1% rise in average prices. This performance highlights the increasing demand for premium office spaces amidst a limited supply.
Rental activity mirrored this upward trend, with a 21.9% increase in transaction volumes compared to October. Average rents rose by 18% year-over-year, driven primarily by office spaces, which saw a 28.1% spike. High occupancy rates and fierce competition for Grade A office spaces remain defining factors in Dubai’s thriving commercial sector.
Business Bay emerged as the leader in office sales with 119 transactions, followed by Jumeirah Lakes Towers (JLT) and Barsha Heights (TECOM). In the rental market, Deira, Dubai Investment Park (DIP), and Bur Dubai ranked as the most active communities.
A Thriving Real Estate Market
Daniel Hadi, CEO of Engel & Völkers Middle East, commented on Dubai’s market dynamics:
“Dubai’s real estate market continues to showcase exceptional strength and adaptability, driven by sustained demand and solid fundamentals. The growing interest in affordable, compact living options highlights the market’s ability to cater to diverse needs, while the commercial sector’s performance underscores the city’s status as a global business hub.”
Hadi also emphasized the potential for record-breaking achievements as Dubai’s economy expands:
“As the city continues to attract global businesses and residents, the real estate sector is poised for sustained growth. The November report reflects strong investor confidence and the market’s adaptability, setting the stage for a promising future as we approach 2025.”
