Dubai Marina, Downtown Dubai and Palm Jumeirah have solidified their position as top areas for buying luxury apartments
Residential Real Estate Sales Surge in Dubai with Record Growth in H2 2024
Dubai’s residential real estate sector witnessed a remarkable 31% year-on-year increase in sales during the second half of 2024, reaching a staggering Dh232 billion, according to a recent report.
The findings, shared by Espace Real Estate, highlight a phenomenal year for the industry. The off-plan market outperformed the secondary market significantly in both value and transaction volume. Off-plan sales rose by 74% year-on-year, amounting to 61,435 transactions valued at Dh127 billion, representing a 51% increase. Meanwhile, the secondary market remained robust, recording 32,487 transactions, up by 15% compared to the previous year.
Dubai’s growing population has been a key driver of this growth, fueling high demand in the off-plan market. By the second half of the year, off-plan transactions accounted for 65% of the overall market, up from 61% in the first half of 2024.
Average property prices rose across 19 of 20 villa communities and 10 of 11 apartment communities. With strong demand and decreasing supply, many renters transitioned to homeownership, pushing prices higher in areas like Springs (+26%), Jumeirah Park (+23%), and Town Square (+21%).
Luxury villa developments also saw significant growth. Refurbishments and new offerings boosted sales prices in established communities such as Jumeirah Islands (+26%), Jumeirah Golf Estates (+35%), and Dubai Hills (+27%). Emerging areas like Al Furjan (+26%) attracted buyers seeking value after being priced out of nearby locations. Espace Real Estate reported a 111% year-on-year increase in mortgage leads as more residents established long-term roots in the city.
Apartment communities also experienced rising sales activity. Emaar Beachfront saw a 34% increase in transaction volumes as new buildings were handed over. Jumeirah Village Circle (JVC) reported a 28% rise in transactions, driven by the area’s continued development and influx of projects. With 24 new projects completed in JVC in 2024 alone, this growth is expected to persist.
Dubai’s population growth, up 65% over the last decade and 10% in the past three years, has added more buyers to the market. The report notes a demographic shift, with six of the top ten buyer nationalities being from Western Europe.
“Four of these countries rank among the top ten globally for GDP, reflecting Dubai’s growing appeal as a hub for global wealth,” said John Lyons, Managing Director of Espace Real Estate. “Post-Covid, European buyers continue to be drawn to Dubai for its exceptional lifestyle, safety, and high returns on investment.”
The report anticipates continued population growth and a steady supply of new properties, primarily apartments, to meet rising demand. Property Monitor revealed that a new property project was launched every 18 hours in Q1 2024, highlighting the city’s rapid expansion.
In H2 2024, off-plan sales accounted for 65% of transactions, contributing Dh127 billion in value. While villa and townhouse transactions dipped by 9%, sales prices rose in 19 of 20 communities, led by Jumeirah Golf Estates (+35%), Arabian Ranches (+27%), and Dubai Hills (+27%).
For apartments, transaction volumes grew by 12%, with prices increasing across 10 of 11 communities. Viewings by Espace Real Estate increased by 30% year-on-year, while buyer registrations rose by 10%.
Rental Market Trends
In the rental market, prices soared across most communities. “High rents, limited supply, accessible mortgages, and population growth have encouraged many tenants to transition into homeowners,” the report said.
Villa and townhouse rental transactions fell by 14%, while apartment rentals saw a smaller decline of 6%, buoyed by new completions in areas like Emaar Beachfront (98%).
Prime Locations for Buyers and Investors
According to data from dubizzle, Dubai Marina, Downtown Dubai, and Palm Jumeirah were the top three locations for luxury apartment buyers in 2024. Dubai Marina remained the top choice for both buying and renting, with average sale prices at Dh2.55 million and rents at Dh145,000 annually.
For luxury villas, Dubai Hills Estate led the market with an average sale price of Dh16.07 million, while Al Barsha topped the rental market with an average rent of Dh436,000.
Al Barari offered the highest return on investment (ROI) for luxury villas at 7.39%, while Green Community led the luxury apartment segment with an ROI of 8.48%.
Jumeirah Village Circle (JVC) emerged as the leading area for mid-tier apartments, with average sale prices of Dh1.12 million and annual rents of Dh78,000.
Haider Ali Khan, CEO of dubizzle and Dubizzle Group MENA, commented, “Dubai’s real estate market has surpassed expectations, achieving over Dh500 billion in transactions between November 2023 and November 2024. This growth is driven by initiatives like revised property visa rules and the expansion of freehold areas. Dubai’s robust economy and major infrastructure projects, including the Dubai Metro Blue Line and Al Maktoum Airport, ensure continued momentum.”
Khan added, “At dubizzle, we are proud to support this growth with comprehensive listings of off-plan developments, empowering buyers across all segments—affordable, mid-tier, and luxury.”
