Dubai Real Estate Market Achieves Unprecedented Milestones in 2024
Dubai’s real estate market has witnessed a landmark year in 2024, achieving record-breaking performance with 180,900 transactions valued at AED 522.1 billion. This marks a significant leap from the previous high of 133,100 transactions worth AED 411.1 billion in 2023, representing growth rates of 36% and 27% respectively, as reported by fäm Properties.
Primary Market Growth
The primary market experienced a remarkable 30% year-on-year increase in first sales by developers, reaching AED 334.1 billion. Transaction volumes soared by 51% to 119,800, driven by strong demand for new developments and off-plan properties. Additionally, the average price per square foot in this segment rose by 10%, reaching AED 1,600.
This growth was propelled by an influx of foreign investors, bolstered by attractive payment plans, visa reforms, and residency incentives. The steady stream of new project launches further contributed to the heightened demand.
Secondary Market Highlights
The secondary market also demonstrated robust growth, with re-sales climbing by 21% to AED 188.1 billion. The transaction count increased by 14% to 61,100, while the average price per square foot rose by 12% to AED 1,300. These figures underscore a shift in buyer preferences towards ready-to-occupy properties, appealing to both end-users and investors seeking high rental yields. Enhanced infrastructure developments also played a pivotal role in boosting property desirability.
Noteworthy Sector Achievements
Firas Al Msaddi, CEO of fäm Properties, described 2024 as a transformative year for Dubai’s real estate market, noting that transaction volumes grew despite global economic uncertainties. He emphasized the resilience of the market, which continues to attract global investors due to strong rental demand and the enduring appeal of luxury properties.
Among the property types, apartment sales led with a 42% year-on-year increase, accounting for 141,168 transactions worth AED 260.6 billion. Villa sales rose by 21.1% to 30,938 units valued at AED 164.1 billion. Commercial property transactions grew by 10.1% to 4,304 units, reaching AED 9.7 billion, while 4,352 plots were sold for AED 86.5 billion, marking a 2.6% rise.
Area-Specific Performance
Al Barsha South 4 emerged as the top-performing area in terms of transaction volume, recording 12,878 first sales by developers. Business Bay led in sales value, with 6,888 transactions totaling AED 21.1 billion. Emerging suburban areas like Madinat Al Mataar and Wadi Al Safa 5 gained traction, reflecting increasing interest in integrated communities and suburban living.
Innovations in Rental Market
The Dubai Land Department (DLD) introduced the Smart Rental Index 2025, a groundbreaking initiative aimed at enhancing the regulation and development of Dubai’s real estate sector. This advanced system integrates the latest technologies and real estate expertise to ensure transparency and fairness in rental valuations.
The index utilizes an innovative building classification system that evaluates properties based on technical and structural features, quality of maintenance and finishes, strategic location, and available facilities such as parking and cleanliness. These criteria aim to provide accurate rental valuations, reflecting the true quality and advantages of each property.
Majid Al Marri, CEO of the Real Estate Registration Sector at DLD, highlighted the transformative impact of the Smart Rental Index, emphasizing its role in fostering transparency and trust among stakeholders. He noted that over 900,000 rental contracts were registered in 2024, marking an 8% increase from the previous year and reflecting growing confidence in Dubai’s real estate market.
The success of Dubai’s real estate sector in 2024 underscores its status as a global investment hub, showcasing its resilience, innovation, and appeal to a diverse and expanding buyer base.
