Total residential sales transactions surged by 40.3 per cent to 170,992 units in 2024, more than five times the number recorded in 2020, the report showed.
Dubai’s Real Estate Market Soars with Off-Plan Sales Dominating in 2024
Dubai’s property sector continues to flourish, with off-plan transactions now making up 63% of all property sales in 2024, a notable rise from 54% in 2023, as reported by Engel & Völkers Middle East.
This remarkable growth in off-plan sales highlights the escalating demand for new developments, driven by competitive pricing, flexible payment plans, and a limited supply of properties in the secondary market.
The report also reveals a substantial increase in total residential sales, which surged by 40.3% year-on-year, reaching 170,992 units in 2024. This figure is more than five times the number of transactions recorded in 2020, showcasing Dubai’s dynamic real estate landscape.
Apartments Lead the Charge in Residential Sales
Investor confidence in Dubai’s real estate market remains strong, with apartment sales at the forefront. Apartment transactions witnessed a 47.6% growth compared to the previous year, accounting for nearly 90% of the overall market expansion.
This surge in apartment sales is fueled by their affordability, attractive rental yields, and appeal to both end-users and investors seeking high returns.
Luxury Market Shines: Palm Jumeirah, Downtown Dubai, and Dubai Marina in Demand
Dubai’s luxury real estate market continues to attract high-net-worth individuals, with Palm Jumeirah, Downtown Dubai, and Dubai Marina leading the demand for prime properties. Additionally, emerging developments such as Palm Jebel Ali and The Oasis are drawing interest from affluent buyers looking for exclusive properties with strong potential for long-term capital appreciation.
In the ultra-luxury segment, properties priced above Dhs10 million experienced a 20.5% increase in sales, further establishing Dubai’s status as a global hotspot for premium real estate investments.
“The sustained growth in off-plan sales reflects a shift in buyer preferences,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “Investors are increasingly drawn to properties offering long-term value and flexible financing options. Developers are meeting this demand with innovative projects, while government initiatives like long-term visas and free zone expansions continue to enhance Dubai’s appeal as a real estate investment hub.”
Commercial Property Market Booms
Dubai’s commercial real estate sector is also witnessing strong growth, bolstered by robust economic fundamentals and a surge in new business establishments. Over 24,000 new business registrations were recorded in the first half of 2024, contributing to high occupancy rates in major business districts such as DIFC, Downtown Dubai, and Business Bay, where occupancy levels range between 95% and 97%.
This growing demand has fueled double-digit rental growth across the commercial sector:
- Office rents rose by 11% year-on-year
- Retail rents increased by 9.7%
- Warehouse prices surged by 21.1%
The limited supply of Grade A office spaces has prompted new development projects, including Aldar Properties’ upcoming venture on Sheikh Zayed Road, alongside other commercial launches expected later in the year.
Promising Outlook for 2025
Looking ahead to 2025, Dubai’s real estate market is poised to remain a key driver of economic growth.
Investor confidence is being fueled by rising property values, the expansion of the luxury segment, and the continued dominance of off-plan transactions. Developers are actively responding to this demand with new projects, while supportive regulatory frameworks, including long-term visas and other investment incentives, are set to sustain Dubai’s strong real estate momentum.
