Dubai’s residential property market set new benchmarks in 2024, recording 169,000 transactions, marking a 42% increase from the previous year, according to real estate advisory firm Cavendish Maxwell.
Property values continued their upward trend, closing the year with a 0.9% rise in December compared to the previous month and a 3.1% increase over the last quarter. On an annual basis, prices climbed by 16.5%, bringing the average cost per square foot to AED 1,493 in December – more than 90% higher than the low recorded in April 2009, as per Cavendish Maxwell’s 2024 Dubai Residential Market Performance report.
The residential sector in Dubai has now experienced 47 consecutive months of price growth. However, as expected, the pace has started to ease, with monthly gains settling around 1%, down from earlier increases of up to 2.5%.
Mortgage activity also reached new peaks, with 36,600 loans issued throughout the year – nearly a third more than in 2023. The off-plan market remained the dominant force, with sales surging to four times pre-pandemic levels. Over 145,000 new off-plan units entered the market, averaging 400 per day. Developers leading new launches included Emaar Properties, Binghatti Properties, and DAMAC Properties. By the end of 2024, projects under construction made up 68% of all residential sales.
According to Ronan Arthur, MRICS, Partner and Head of Residential Valuation at Cavendish Maxwell, these figures reflect more than just post-pandemic recovery. He emphasised that the market has experienced steady growth since 2022, driven by continued international interest, particularly from buyers in India, China, and other parts of the Middle East. While Dubai’s real estate sector remains strong, early indications suggest a shift toward more sustainable levels of growth. Regulatory measures and strategic decisions by developers and investors are expected to help maintain market stability.
Apartments accounted for the majority of purchases in 2024, making up 81% of transactions – a 3% increase from the previous year. Townhouses represented 13% of sales, down by 1%, while villas accounted for 6%, reflecting a 2% decline from 2023.
Key Locations
Mohammed Bin Rashid City led the way in new property deliveries, adding 5,300 homes in 2024. Other high-supply areas included Jumeirah Village Circle (4,800 units), Business Bay (2,800), Al Furjan (2,600), and Rukan in Dubailand (1,500). Looking ahead, Jumeirah Village Circle is set to receive nearly 25,000 new units by 2027, followed by Business Bay (16,000), Azizi Venice (13,500), DAMAC Lagoons (11,100), and Arjan (9,000).
Jumeirah Village Circle also led in apartment sales, topping both title deed and off-plan transactions with 4,048 and 11,917 sales, respectively. Business Bay followed with 3,400 title deed transactions, while Dubai Marina (2,963), Downtown Dubai (2,289), and International City (1,927) rounded out the top five. In the off-plan segment, Business Bay saw 6,779 transactions, followed by Dubai Hills (5,487), Mohammed Bin Rashid City (4,156), and Sobha Hartland II (3,957).
For villa and townhouse sales, DAMAC Hills 2 recorded the highest number of title deed transactions, with 3,559 sales – almost twice as many as DAMAC Lagoons, which saw 1,372 transactions. Other popular locations included The Acres (896), Emirates Living (802), and Al Furjan (729). Leading the off-plan sector, The Valley registered 2,850 sales, followed by Emaar South (1,721), DAMAC Riverside (1,620), Haven (743), and Reportage Village (663).
Market Trends
Apartment prices saw notable increases across various locations, with Barsha Heights leading the way at 33% higher in Q4 2024 compared to the same period in 2023. Dubai Silicon Oasis followed with a 24% rise, while Jumeirah Lakes Towers posted a 21% increase. Meanwhile, Dubai Production City experienced a 6% decline, with smaller drops recorded on Bluewaters Island (4%) and in Mohammed Bin Rashid City (2%).
For villas and townhouses, price growth was observed across all areas. Nad Al Sheba registered the highest increase at 54% in Q4 2024 compared to the previous year. Jumeirah Village Triangle saw prices rise by 33%, followed by Dubai South at 29%.
Rental Market Overview
Rental yields remained attractive throughout the year, reinforcing Dubai’s position as a prime choice for investors. By the end of 2024, average gross yields stood at 7.4% for apartments and 5.1% for villas and townhouses. Dubai Investments Park recorded the highest rental returns at 10.3%, followed by International City at 9.4% and both Dubai Production City and Downtown Jebel Ali at 8.6%.
Payment preferences remained consistent, with nearly 40% of tenants opting for two rent cheques, while 35% paid in a single installment. Approximately 18.5% chose a four-payment plan. Landlords tend to favour one or two payments, with some offering discounts for lump-sum transactions.
Rental Costs on the Rise
Rental prices saw varying levels of increase across Dubai. Apartment rents in Dubai South surged by 30% year-over-year, followed by Al Furjan (27%) and Dubai Production City (24%). More moderate rises were recorded in Palm Jumeirah (5%), Al Habtoor City (3%), and Bluewaters Island (1%).
While Palm Jumeirah apartments had a modest rental increase, villa rates in the area climbed significantly – up 52% from 2023. Other areas with substantial villa rental growth included Al Furjan (39%) and Dubai Investments Park (38%).
Upcoming Developments
Dubai’s residential pipeline includes 243,000 units scheduled for completion by the end of 2027, with apartments making up 80% of future supply. Locations expecting over 2,000 new units include Palm Jumeirah, Dubai Hills, Dubai Marina, Jumeirah Village Circle and Triangle, Al Furjan, Dubai Silicon Oasis, Town Square, and Studio City.
Original article reference: Zawya.
