Bayut’s report reveals significant price increases across various segments, driven by high demand and strong ROI.
Dubai Real Estate Market Sees Continued Growth in 2024, Highlights Bayut Report
Dubai’s real estate market is on an impressive upward trend, as revealed in Bayut’s latest detailed report for 2024. This report sheds light on the major developments shaping Dubai’s property sector. Key findings include consistent increases in property prices across the emirate’s most sought-after areas, spurred by growing demand, steady supply, and the city’s attractiveness to high-net-worth individuals drawn to favourable tax policies and abundant economic opportunities.
Key Trends in Dubai’s Property Market
Bayut’s report highlights significant property price increases across various categories:
- Villas: Popular communities such as Arabian Ranches saw price hikes of up to 56%, underlining strong interest in premium suburban living.
- Affordable housing: Budget-conscious buyers favoured areas like Dubai Silicon Oasis, Dubai Sports City, DAMAC Hills 2, and Dubailand. Notably, Dubailand experienced over a 100% rise in villa prices.
- Mid-range properties: Neighbourhoods like Jumeirah Village Circle (JVC), Business Bay, Al Furjan, and The Springs reported price increases ranging from 7% to 40%, reflecting demand for well-located homes.
- Luxury properties: Prestigious areas such as Dubai Marina, Downtown Dubai, Dubai Hills Estate, and Palm Jumeirah remained dominant in the luxury segment. However, Dubai Land Department (DLD) data shows Palm Jumeirah apartments experienced an 8.4% decline in transactional prices.
Property Sales in 2024
Dubai’s real estate market achieved over 169,000 transactions, collectively worth AED 488 billion as of December 10, 2024. The ready property market accounted for more than 67,000 deals worth AED 274 billion, while the off-plan segment contributed over 102,000 transactions, valued at AED 213 billion.
High Rental Yields for Investors
Bayut’s data underscores Dubai’s strong ROI potential:
- Affordable apartments: Communities like Dubai Investments Park (DIP), Discovery Gardens, and Liwan offered rental yields of 9% to 11%.
- Mid-tier properties: Areas such as Living Legends, Motor City, and Al Furjan delivered yields above 8.7%.
- Luxury apartments: Neighbourhoods like Al Sufouh, Green Community, and Al Barari provided rental yields between 7% and 9%.
- Villas: Affordable villa communities like DAMAC Hills 2 and International City offered returns exceeding 6%, while mid-range areas such as JVC and Al Furjan achieved 6% to 8%. Luxury villa communities like The Sustainable City and Tilal Al Ghaf exceeded 6%.
Rental Trends in 2024
The rental market in Dubai experienced significant growth:
- Affordable rentals: Apartment rents increased by up to 48%, with two-bedroom flats in Deira seeing the highest jumps.
- Mid-tier rentals: Rental rates climbed by up to 41% in popular locations like Jumeirah Lake Towers (JLT), emphasizing demand for central areas.
- Luxury rentals: Upscale villa rents rose as much as 60%, with Jumeirah recording the highest demand for six-bedroom homes.
Key neighbourhoods for affordable rentals included Deira and Bur Dubai for apartments and DAMAC Hills 2 and Mirdif for villas. Mid-range options thrived in JVC, Business Bay, and Town Square, while Dubai Marina and Downtown Dubai led the luxury apartment market.
Dubai’s Strategic Growth and Real Estate Appeal
Dubai’s ongoing appeal stems from visionary government policies, a thriving economy, and a strong focus on sustainability and innovation in real estate development. These factors solidify the city’s position as a global hub for real estate investment.
Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, stated, “Dubai’s real estate market is buzzing right now, and it’s easy to see why. Luxury properties in Palm Jumeirah and Dubai Hills Estate are breaking records, while emerging areas like Dubai South and Dubai Creek Harbour are gaining traction thanks to improved infrastructure and strategic locations.”
With over 4 million expatriates expected to call Dubai home by 2025, the city’s property market is set to thrive, offering unparalleled opportunities for investors and developers alike.
