Market Insights: December 2024

Apartments, townhouses, and villas comprised 92.8% of all transactions, showing continued demand for residential properties.

December capped a record year for Dubai’s real estate, marked by rising prices, surging transactions, and a strong off-plan market. Property values rose 0.88% month-on-month to AED 1,493 per sq.ft., extending the market’s 50-month growth streak and pushing prices 21% above their previous all-time peak.

With such strong demand, developers kept pace by launching 10,600 new units in December, bringing 2024’s total to 145,000 - nearly triple 2022’s levels. More interestingly, ultra-luxury developments - a proven indicator of Dubai’s market - took a backseat to more affordable options. While this strong growth and shift toward affordability is promising, it also presents an opportunity for continued market evolution and stability.

Sales transactions reached 15,108, up 4.3% from the previous month, making it the strongest December on record. The majority of activity came from the off-plan market, with 9,179 Oqood transactions recorded. Off-plan resales also reached a record high, accounting for 29.7% of secondary sales. This surge in off-plan transactions indicates strong liquidity in the market, with many investors choosing to exit their investments before the handover of properties.

Dubai’s AED 750k-1M price tier saw the strongest growth, rising 1.1% in December to claim a 13.4% market share. This was largely driven by new developments, particularly upper-mid category apartments at Binghatti Skyrise in Business Bay, where average sales prices hit AED 2,264 per sq.ft. Budget-category apartments also contributed to this tier’s growth, with the likes of Binghatti Apex and Neva Residences in Jumeirah Village Circle selling at AED 863 and AED 992 per sq.ft., respectively.

The AED 1M-1.5M and AED 1.5M-2M price tiers also gained ground, collectively growing by 1.6%. This momentum was fueled by the same successful launches, along with strong off-plan sales of mid-category apartments at Sobha Orbis in Motor City and lower-mid category apartments at Binghatti Ghost in Dubai Health Care City II, where prices averaged AED 1,890 and AED 1,568 per sq.ft., respectively.

The AED 500k-750k tier, last month's top performer, dropped by 1.7% to 12.7% of total transactions. This drop came as more buyers turned to higher price tiers, especially in the AED 750k-1M and AED 1M-1.5M ranges.

When grouping all nine price tiers into three categories, a clear shift toward mid-tier properties emerges. The AED 1M-3M segment grew by 1.8% from November, now accounting for 50.4% of total transactions. With over half of all sales in this range, demand for mid-tier properties remains strong among both end-users and investors.

Meanwhile, the lower-priced segment (under AED 1M) dipped 1.4% to 30.3% market share, though it continues to attract first-time buyers and investors seeking high returns.

Lastly, the high-end segment (over AED 3M) accounted for 19.3% of transactions, slipping 0.4% from the previous month.

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