Dubai's real estate market thrives: Record sales and rising demand in 2024

Dubai is solidifying its reputation as a global hotspot for real estate, particularly in its thriving residential market, according to a report by Metropolitan Homes, a division of the Metropolitan Group focusing on the city’s secondary property market.

Svetlana Vasilieva, head of Secondary Sales at Metropolitan Homes, noted that Dubai’s real estate market has demonstrated remarkable strength, with record-breaking sales volume and price increases reflecting the city's booming economy.

She attributed this growth to factors such as rising foreign investment, infrastructure development, and Dubai's efforts to attract global talent and businesses.

Key insights from the report include a 17.8% year-over-year rise in transaction volumes, reaching 27,949 transactions, and a 23.1% increase in transaction values to AED 76.34 billion.

May 2024 set a new record for monthly residential resale transactions, with 17,139 deals. Despite challenges, such as April's unprecedented floods, the market quickly rebounded, underscoring its resilience.

Key market highlights:

• Resale prices: The average price per square foot for resale properties rose by nearly 7% year-on-year to AED 1,545.
• Apartment sales: Apartments remain the most popular choice, with 21,578 units sold (a 20% increase), totaling AED 39.99 billion in value. Prices rose 5.5%, with Palm Jumeirah leading demand, while areas like Dubai South and Dubai Studio City gained traction.
• Villas & townhouses: Demand surged, with villa resale values growing by 22.6% and townhouse sales climbing by 37.4%. The average price per square foot for villas and townhouses increased by 11.3%, reflecting growing interest from families and long-term residents.

Top-performing areas included Jumeirah Islands, Mohammed bin Rashid City, and Dubai South, while high-end sales in Jumeirah Bay Island led the market for villas.

Looking ahead, Metropolitan Homes remains confident in Dubai’s market potential, driven by the city's solid real estate fundamentals, growing population, and ongoing infrastructure projects, such as Dubai South and Dubailand.

The Urban Master Plan 2040 is set to further boost mid-market developments, making Dubai an attractive destination for both investors and end-users.