With sales prices surpassing AED 522.5 billion ($142.2 billion), a 27 percent annual rise, Dubai’s real estate market saw remarkable growth in 2024. According to fäm Properties’ most recent report, the market had 181,000 sales transactions, representing a 36% yearly increase.
With some of the best returns on investment in the world, Dubai’s place as a global leader in real estate has been solidified by this outstanding success. DXB Interact reports that investors made AED100.5 billion ($27.36 billion) from the industry, underscoring Dubai’s allure as a center for real estate investment propelled by strong demand, cutting-edge advancements, and government-supported incentives.
Factors driving investors to Dubai
Investors are drawn to Dubai’s real estate market for a number of reasons, including:
Strong economic growth
The economy of Dubai is still growing at an astonishing rate. The city’s economy reached $31.6 billion in the second quarter of 2024, an annual growth of 3.3 percent. With consistent development in the majority of industries, the second-quarter growth in H1 2024 pushed the overall GDP to AED231 billion, a 3.2 percent growth rate from the first half of 2023.
In the second quarter of 2024, the real estate industry also grew by 2.6 percent, adding 6.9 percent to growth and making up 8.7 percent of Dubai’s GDP, which was valued at AED 10.15 billion.
High returns on investment
According to Bayut, the highest yields of 9 to 11 percent were found in reasonably priced apartments in neighborhoods including Liwan, Discovery Gardens, and Dubai Investments Park (DIP) last year.
ROI percentages above 8.7 percent have been reported for mid-tier communities such as Living Legends, Motor City, and Al Furjan. In the meantime, rental yields for upscale units in Al Sufouh, Green Community, and Al Barari have been reported to be between 7% and 9%.
With ROIs exceeding 6%, Dubai Industrial City, International City, and DAMAC Hills 2 have dominated the inexpensive villa market. Mid-tier villa complexes, such as Jumeirah Village Triangle, Al Furjan, and Jumeirah Village Circle provided returns of 6 to 8 percent. At the same time, luxury villa communities with ROIs above 6% were recorded, such as The Sustainable City, Al Barari, and Tilal Al Ghaf.
Population growth
As a result of increased migration and economic activity, population growth rates continued to be positive, reaching a peak of 4.66 percent in 2024. Dubai added almost 470,000 citizens over the course of five years, highlighting the city’s ongoing appeal as a place to relocate.
The real estate sector is in a strong position to benefit from continued growth, as estimates place Dubai’s population at 7.8 million by 2040. The population of Dubai is predicted to exceed 4 million by 2025, which would probably lead to significant demand increase in all real estate markets.
Tourism surge
One of the key drivers of Dubai’s economic prosperity has remained tourism. The city saw 16.79 million visitors between January and November 2024, an increase of 9.2 percent from the previous year. This considerable increase highlights Dubai’s allure as a worldwide location for innovation, business, and pleasure.
Dubai primary market sales grow 51 percent
Developers’ first sales in the primary market increased by 30% year over year to AED334.1 billion in 2024, indicating a significant demand for off-plan houses and new developments. In 2024, the volume of transactions increased by 51% to 119,800, indicating a significant rise in developer activity and investor confidence. The average price per square foot also steadily increased, rising by 10% to AED 1,600.
New project launches and advantageous payment plans drove demand as the market drew in overseas investors with the help of visa reform and residency incentives.
In the primary market, Al Barsha South 4 was the top-performing location in terms of overall volume, with 12,878 first sales from developers, showing its popularity among investors and end-users.
Secondary market sales grow 21 percent
Last year, Dubai’s secondary real estate market had robust demand, with resales rising 21% to AED188.1 billion. Additionally, the volume of transactions increased by 14% to 61,100, indicating consistent activity. Additionally, the average cost per square foot rose by 12% annually to AED 1,300.
“The 2024 re-sale figures reflected buyers shifting to ready properties for immediate occupancy, and high rental yields attracting investors, while infrastructure improvements enhanced property desirability. Sales values broke historical records, and with strong rental demand, and luxury resilience, the market continues to attract global investors, reinforcing its status as a top real estate destination,” said Firas Al Msaddi, CEO of fäm Properties.
Dubai Marina led in total value, with 4,924 transactions totaling AED15.2 billion, highlighting its position as a high-end, waterfront destination, while Business Bay continued to dominate resale transactions, registering 5,142 agreements over the course of the year.
Al Barsha South Fourth, Al Thanyah Fifth, Al Merkadh, Downtown Dubai, and Jabal Ali First were other well-liked locations in the resale market.
