According to data released on Thursday, Dubai’s residential real estate market has broken yet another milestone, with total sales for the first time surpassing Dh50 billion.
The most recent report from Engel & Völkers Middle East shows that sales transactions increased to 19,605—an 80% year-over-year rise. In the secondary market, where sales increased by a strong 33%, the off-plan segment was the main driver of sales, which rocketed by 117% year over year despite limited supplies.
“This remarkable performance showcases Dubai’s undeniable resilience and appeal as a premier global real estate market,” said Daniel Hadi, CEO of Engel & Völkers Middle East “The city continues to attract high-net-worth investors and global businesses seeking stability and growth opportunities.”
With an extremely competitive average rental yield of 6.9 percent, Dubai continues to be a desirable location for investors despite the sharp increase in property values, with average prices rising by 1.7%. Dubai’s reputation as a durable and desirable real estate market is further reinforced by this strength, which comes against a backdrop of global geopolitical difficulties.
Dubai’s real estate sector was hailed by Engel & Völkers as a shining example of luxury, creativity, and unmatched living. The top five upscale neighborhoods in Dubai were also mentioned in their most recent survey. These neighborhoods stand out due to their renown, distinctive qualities, and upscale living options. Palm Jumeirah, Dubai Marina, Downtown Dubai, Dubai Hills Estate, and Emirates Living are the pinnacles of first-rate residential living in the city, offering both famous waterfronts and tranquil suburban retreats.
- Palm Jumeirah: The largest artificial island in the world, Palm Jumeirah is the pinnacle of luxury living, with upscale shopping, marinas, and private residences. Beachfront villas average Dh37 million, and it usually ranks first for property transactions above Dh10 million.
- Dubai Marina: A contemporary center that draws families and young professionals, Dubai Marina is well-known for its top-notch cuisine and exciting nightlife. Sophisticated waterfront residences and the district’s famous canal make it a popular choice for discriminating purchasers.
- Downtown Dubai: This area offers unmatched urban luxury and is home to the famous Burj Khalifa, Dubai Mall, and Dubai Opera. Wealthy people seeking the ultimate in city living are drawn to its upscale residences.
- Dubai Hills Estate: Families and professionals who appreciate a suburban setting with lots of green space favor this ideal blend of luxury and nature. Its vast parks and esteemed 18-hole golf course provide a distinctive setting for life.
- Emirates Living: Families seeking tranquility and close access to prestigious schools will love Emirates Living, which is home to communities including The Springs, The Lakes, The Meadows, and the upscale Emirates Hills. Its tranquil lakes and verdant surroundings provide an unparalleled suburbia experience.
Dubai’s commercial real estate market demonstrated its strong underlying demand, despite a minor decline in the volume of residential sales and rental transactions. The entire value of commercial sales hit a record Dh10.9 billion, which was 10% more than in 2023 and the highest monthly total for 2024. Rising transaction values and ongoing demand in premium commercial spaces were the main drivers of this growth.
Notably, sales in the office sector increased by 24% year over year, and the average office price increased by 37% from the previous year to Dh1,503 per square foot. In addition, office rental costs increased significantly, rising 25.8% year over year, while retail rentals increased 6.9% over 2023.
In light of Dubai’s ongoing economic growth and the influx of companies moving or growing there, Engel & Völkers Commercial expects 2024 to end strongly and 2025 to look bright.
