Dubai real estate market achieved record-breaking growth in 2024

Dubai’s real estate market has experienced a historic year in 2024, reaching unprecedented milestones with a record 180,900 transactions valued at AED 522.1 billion. This marks significant growth, surpassing 2023’s previous high of 133,100 sales worth AED 411.1 billion by 36% and 27%, respectively, according to a report released by fäm Properties.

Primary market drives growth

The primary market saw remarkable progress, with first sales from developers climbing 30% year-on-year to AED 334.1 billion. Transaction volumes surged by 51% to 119,800, reflecting heightened buyer confidence and robust developer activity. The average price per square foot also rose by 10% to AED 1,600, underscoring strong demand for new developments and off-plan properties.

This growth was fueled by an influx of foreign investors attracted by new project launches, favorable payment plans, residency incentives, and visa reforms.

Secondary market shows resilience

The secondary market demonstrated healthy demand, with re-sales increasing by 21% to AED 188.1 billion. Transaction volumes rose by 14% to 61,100, while the average price per square foot appreciated by 12% year-on-year to AED 1,300. These figures highlight the appeal of ready properties for immediate occupancy and high rental yields for investors.

Infrastructure improvements and the overall desirability of Dubai’s real estate contributed to the sustained activity in the secondary market.

Sector-specific highlights

• Apartments: A 42% increase in sales volume to 141,168 transactions worth AED 260.6 billion.
• Villas: A 21.1% rise in sales to 30,938 units valued at AED 164.1 billion.
• Commercial Properties: A 10.1% increase in transactions to 4,304 units at AED 9.7 billion.
• Land Plots: A 2.6% growth with 4,352 plots sold for AED 86.5 billion.

Key areas and emerging trends

In the primary market, Al Barsha South 4 stood out as the top-performing area by transaction volume, recording 12,878 first sales. Business Bay led in overall sales value, with 6,888 transactions totaling AED 21.1 billion.

Emerging areas such as Madinat Al Mataar and Wadi Al Safa 5 gained traction, reflecting growing interest in suburban living and integrated communities.

“This was a remarkable year for Dubai real estate,” said Firas Al Msaddi, CEO of fäm Properties. “Despite global economic uncertainties, transaction volumes and sales values broke historical records. With strong rental demand and resilience in the luxury segment, Dubai continues to attract global investors, solidifying its position as a leading real estate destination.”

The robust growth in Dubai’s real estate market throughout 2024 highlights the emirate’s resilience and adaptability. With record-breaking transaction volumes, rising property values, and increased investor confidence, Dubai’s real estate sector remains a beacon of opportunity and innovation, poised for continued success in the years ahead.