Dubai Real Estate Market Hits Record AED 141.9 Billion in Q3 2024

The real estate market in Dubai is experiencing a healthy growth that seems impossible to stop reaching staggering heights in Q3 2024 with total sales achieving AED 141.9 billion ($38.6 billion) marking a new record. This unprecedented achievement has exceeded the previous record set in Q2 which stood at AED 124.07 billion, representing an annual growth of total value of 30.1% year on year.

Soaring Sales Volume and Transaction Growth

As per the latest fäm Properties market update, a remarkable 37.9 % increase of transaction volume was recorded, with 50,423 sales transactions overall in Q3. When measured against Q2 2024, Dubai also increased its sales volume by 16.6 %, further cementing its position as a commanding global player in the real estate industry.

Apartments Continue to Dominate Sales

Most of these transactions resulted from the apartment sales, which made up for 77% of the entire figure. An astonishing figure of 39,058 apartment sales was recorded in Q3 2024 bringing in AED 70.5 million. This accounts for a hefty increase in volume of 43.9% as compared to the corresponding period of the previous year.

Villas and Plots See Impressive Growth

The villa sector in Dubai also experienced a positive change as 8,156 villas were transacted for AED 39.2 billion translating to a 16.6% drop in volume compared to Q3 2023 and an 18.4% increase compared to Q2. The demand for land also increased with the sale of 2,102 plots, which made AED 29.9 billion, representing a 45.9% growth in volume as compared to the same quarter last year and a 42.3% growth from Q2.

Commercial Real Estate Gains Ground

Recently, commercial real estate has shown some marginal growth, for instance, there were reported 1,112 sales made during the period worth AED 2.3 billion, which is a 12.1% increase in the sales volume from the sales volumes earned for the reviewed period in Q3 2023.

Rising Property Values Reflect Market Strength

In recent years, there has been a recognized temperature of gold for housing where it has constantly been increasing as in the average price a square foot Turbo is expected to reach AED 1511 by the third quarter of 2024. This is a notable increase from 1,017 AED in the year 2021 sporting a price jump from 1,179 AED in the calendar year of 2022 and 1405 AED the year before, which signals an increase in the demand and appreciation of the property market in Dubai.

A Resilient and Booming Market

“The figures once more emphasise the resilience of the Dubai real estate market and the consistent growth we’ve seen in recent years, which continues to enhance investor confidence,” said Firas Al Msaddi, CEO of fäm Properties.

“This ongoing upward trend reinforces Dubai’s status as a leading destination for real estate investment, attracting growing interest from global investors, as well as buyers from the local and regional markets.”

The volume of property sales in Dubai Q3 on a five-year basis has increased tremendously from AED18.1 billion in 2020 to AED 42.4 billion in 2021, AED 69.5 billion in 2022 and AED 109.2 billion in 2023. The current highest level attained in 2024 at AED141.9 billion indicates the sustained bullish level of the market.

Top Performing Areas in Q3 2024

Dubai’s top-performing areas in Q3 2024 include:

• Jumeirah Village Circle: 4,467 transactions – AED5.33 billion
• Dubai South: 2,910 transactions – AED8.25 billion
• Business Bay: 2,651 transactions – AED7.22 billion
• Wadi Al Safa 5: 2,382 transactions – AED5.3 billion
• Dubai Hills Estate: 2,358 transactions – AED7.38 billion

Most Expensive Sale in Q3 2024

The sale at Palm Jumeirah , a luxury apartment in Dubai reached AED 275 million, the highest price recorded for any property sold in Q3, was one of the most attention-grabbing transactions in Q3.

Properties in the AED 1 - 2 Million Range Lead Demand

Properties estimated between AED1 to AED 2 million were the most preferred price segment accounting for 31% of the sales transactions. Moreover, properties sold below one million AED constituted 29% of the sales, 18% were within the range of AED2-3 million, 14% were within the range of three-five million USD whereas properties above five million USD accounted for 8% of the sales. The varying property prices indicate that there is a sizable difference in the type of investors that come to Dubai.

New Developments Outpace Resales

Modernization remains a key factor in the current situation of the real estate market in Dubai, as the primary sales from developers have exceeded the secondary sales in the property reselling market. Looking at the figures, first sales accounted for 68% of transactions in volume, whereas resales were only 32%. In the same fashion, new developments realized 63% of the total sales value and only 37% was through the resale market.

The Real estate market in Dubai is showing tremendous growth and development with no indication of slowing down. Due to constant expansion in every facet—apartments, villas, plots of land and commercial properties—the emirate attracts numerous investors from different parts of the globe.