In the third quarter of 2024, Dubai’s real estate scene has again shown why it attracts investors worldwide. Its growth, chances for profit, and ability to bounce back seem unstoppable.
Backed by helpful policies, Dubai’s market has set new records this quarter. This report looks at Dubai’s amazing real estate results in Q3 2024. We check out the big jump in sales of not-yet-built properties, the steady interest in high-end homes, and the booming rental market. Dubai is a city that keeps moving – always growing taller and wider.
Good policies, foreign cash, and the government’s push to make Dubai a center for new ideas and luxury have helped the market break records. This report digs into Dubai’s impressive property results in Q3 2024. We look at demand for future builds, luxury homes, and rentals. It’s a city that keeps reaching new heights – both in its skyline and its success.
Key Highlights
- AED 138.8 Billion in Total Sales: The overall real estate sales for Q3 2024 was recorded at AED 138.8 billion with residential sales complementing commercial transactions in the emirate.
- Residential Growth: Residential sales registered a growth of 40.8% year on year at AED 115.6 billion. Off-plan transactions led the charts, accounting for more than 65% of transactions.
- Commercial Growth: Sales in the commercial markets stood at AED 23.2 billion, up 28% from Q3 2023, backed by strong office and retail demand.
Economic Fundamentals and Investment Attractiveness
Dubai is among the hot spots international investors prefer. The UAE’s projected economic growth of 3.9% for 2024 and an expected acceleration to 6.2% in 2025 further strengthen investor confidence. Along with the UAE, Dubai’s economy is booming, they have low taxes and fantastic infrastructure. They are expected to continue their economic growth, boosting investors more.
Daniel Hadi, CEO at Engel & Völkers Middle East, said: “Dubai Real Estate Market is strong and attractive to many. The demand for high-quality properties and the government’s plans for growth show the market is moving up.”
Residential Market Performance
Dubai’s residential market recorded a surge in transaction volumes, totalling AED 115.6 billion in Q3 2024. The majority of these transactions were off-plan sales, accounting for 65% of the market. More than 30,000 new units were sold, a growth of 62.5% from a year ago. The average per square foot residential price in Dubai has continued to rise steadily, to AED 1,448 at Q3 2024. This has been from AED 807 in Q2 2020, with sustained demand and rising prices, especially in prime settings like Palm Jumeirah, Dubai Hills Estate , and Emirates Living, meaning that investors continue to be interested in high-end properties, driving prices to record levels.
| Year | Q3 Transaction Value (AED Bn) | Q3 Transaction Volume (No. of Units) |
|---|---|---|
| 2020 | 12 | 7,168 |
| 2021 | 32.8 | 13,951 |
| 2022 | 53.8 | 22,032 |
| 2023 | 89 | 32,586 |
| 2024 | 116.8 | 47,067 |
Sales leaders were Jumeirah Village Circle , Dubai Hills Estate, and Business Bay , etc. Newly launched projects such as Dubai Creek Harbour and Sobha Hartland 2 gained massive attention. Interest in ready homes was also picking up, suggesting a steady level of engagement.
Sales volume at the apartment has been on an uptrend. Quarter after quarter, off-plan and secondary sales both have gained momentum. By Q3 2024, off-plan sales reached nearly 25,000 units sold.
The off-plan market continues to command a premium for apartments, averaging at Q3 2024 AED 1,943 per square foot, compared to AED 1,384 for secondary-market transactions. On average, off-plan is 34% higher than secondary transactions, indicating strong investor demand for new, customizable units in key areas.
This off-plan sales growth manifests that more investors believe in new developments. The most important areas include Jumeirah Village Circle, Business Bay, and Dubai Marina .
| Areas | Off-Plan Apartment Registrations |
|---|---|
| Jumeirah Village Circle (JVC) | 10.1% |
| Business Bay | 7.7% |
| Dubai Marina | 6.5% |
| Downtown Dubai | 5.1% |
| Jumeirah Lake Towers (JLT) | 4.6% |
Also, sales of villas and townhouses posted a growth rate in Q3 2024. Over 9,000 units showed a preference for spacious living, while DAMAC Lagoons and DAMAC Hills 2 secured buyers with family-friendly and upscale homes. The average price per square foot of villas and townhouses in the secondary market stands at AED 1,500 for Q3 2024 as buyers remain keen on ready properties. Off-plan villas/townhouses averages at AED 1,412 per square foot as investors followed the newer launches which include The Valley and Arabian Ranches 3.
| Areas | Off-Plan Townhouse Registrations | Areas | Off-Plan Villa Registrations |
|---|---|---|---|
| DAMAC Lagoons | 10.4% | DAMAC Hills 2 | 7% |
| DAMAC Hills 2 | 9.8% | Dubai Hills Estate | 6.1% |
| Villanova | 7.3% | Emirates Living | 6.1% |
| Arabian Ranches 3 | 7.2% | DAMAC Hills | 6% |
| The Valley | 6.9% | Mohammed Bin Rashid (MBR) City | 5.2% |
Luxury Market Performance
In Q3 2024, Dubai saw a big jump in luxury real estate deals. There were 635 sales, up 9% from last year, worth AED 17.17 billion. This boost changed the real estate market a lot, with more people buying existing homes than new ones.
Most of these deals, 63% (404 sales), were for homes worth over AED 20 million. This shows Dubai’s strong demand for luxury homes. In Q3, 363 homes were sold for the first time, and 272 were resold. Apartments made up 17% of these sales, while villas and townhouses made up 83%.
The top spots for luxury apartments were Downtown Dubai, Palm Jumeirah, and Business Bay. For villas, The Oasis by Emaar , Palm Jumeirah, and Mohammed Bin Rashid City (MBR City) were the favorites.
| Luxury Market Transactions (AED 15m & Above) | Q3 2023 | Q3 2024 | Change |
|---|---|---|---|
| Total Transactions | 581 | 635 | +9% |
| Secondary Sales | 404 | 515 | +27% |
| Off-Plan Sales | 177 | 120 | -32% |
| Total Sales Value (AED Bn) | 15.75 | 17.17 | +9% |
Commercial Real Estate
A 28% increase from last year has seen big gains in the commercial sector, where sales reached AED 23.2 billion. While the total number of deals was down, the value of deals was up because of higher prices for top properties.
Office sales rose by 12.6%, and retail sales rose by 16.8%, indicating huge demand for prime commercial space. Business Bay and JLT are still very popular among businesses. The leasing market was still quite active, with office and retail space rents up 4% and warehouse space rents up 19%.
Rental Market
In Q3 2024, Dubai reports 123,899 rental transactions for the quarter, or 17% more than Q2 2024. The increasing trend mainly finds support through renewals, whereby it accounts for 58% of the market share, while the remaining 42% stands for new contracts.
Deira, JVC, Bur Dubai, Dubai Marina, and Business Bay top the list in newer agreements. New rentals are mostly apartments: Almost 86 per cent of new contracts, which have an average rental price of AED 82,000. Townhouses average is priced at AED 177,400 while villas cost at AED 300,000.
We will be expecting a significant amount of new supply to roll into the market in coming quarters. We will also witness stabilization in rental prices. This will further bring better choice and will alleviate pressure on demand across various property types.
| Rental Transactions Overview | Q3 2023 | Q3 2024 | Change |
|---|---|---|---|
| Total Rental Contracts | 106,181 | 123,899 | +17% |
| New Contracts (%) | 42% | 42% | 0% |
| Renewed Contracts (%) | 58% | 58% | 0% |
| Average Apartment Rent (AED) | 75,000 | 82,000 | +9.3% |
| Average Villa Rent (AED) | 265,000 | 300,000 | +13.2% |
| Average Townhouse Rent (AED) | 157,000 | 177,400 | +13% |
Buyer Preferences and Search Trends
The most searched areas for apartments in Q3 2024 are Dubai Marina at 9.7% and Jumeirah Village Circle (JVC) with 9.5%, followed by Downtown Dubai at 8.4%. For townhouses and villas, it’s Dubai Hills Estate at 6.3%, followed by Al Furjan at 5.5% and Palm Jumeirah at 5%. This reflects the growing interest in prime locations and high-end living.
Buyer Profile and Cash/Mortgage Trends
BH Buyer Profile indicates the highest proportion of buyers among investors, who now feature on 67% of the total transactions in Q3 2024 in comparison to 44% from the same period last year in Q2 2023. The reasons for this trend may be attributed to the high property yields that have made Dubai quite appealing and in particular, the appeal of the emirate as a safe investment haven.
| Buyer Profile Breakdown | Q3 2023 | Q3 2024 | Change |
|---|---|---|---|
| End User (%) | 37% | 33% | -4% |
| Investor (%) | 63% | 67% | +4% |
Cash vs. Mortgage Transactions
Mortgages accounted for 52% of property purchases, and the remaining 48% were cash transactions in Q3 2024. This balance is seen because confidence in using financial institutions while purchasing property is increasing. The reason is the low interest rate environment and favorable lending conditions.
| Cash vs Mortgage Transactions | Q3 2023 | Q3 2024 | Change |
|---|---|---|---|
| Cash Transactions (%) | 57% | 52% | -5% |
| Mortgage Transactions (%) | 43% | 48% | +5% |
Top Buyer Nationality
The top buyer nationalities reflect the diverse international interest in Dubai real estate:
- India remains on top, followed closely by UK and Pakistani buyers.
- China has climbed into the 6th position with Lebanon and Russia also featuring in the top ten, which reflects more interest in those markets.
| Rank | Country | Q3 2024 Investment Proportion |
|---|---|---|
| 1 | India | Highest |
| 2 | United Kingdom | High |
| 3 | Pakistan | Moderate |
| 4 | United Arab Emirates | Moderate |
| 5 | Egypt | Moderate |
| 6 | China | Moderate |
| 7 | Italy | Moderate |
| 8 | Lebanon | Moderate |
| 9 | Russia | Low |
| 10 | France | Low |
This diversified buyer base further solidifies Dubai’s position as a global investment destination, attracting high-net-worth individuals from across the globe.
Dubai Real Estate Market Outlook
Dubai’s real estate market is expected to move along the growth trajectory. Economic diversification policies, mainly in technology, healthcare, and green energy, should propel residential and commercial property demand. Dubai has more than 29,000 units forecasted for 2024, and with the incredible supply due to roll out in the immediate future, this space can continue its expansion.
| Year | Completed Units | Upcoming Units |
|---|---|---|
| 2020 | 44,664 | - |
| 2021 | 32,968 | - |
| 2022 | 38,077 | - |
| 2023 | 33,901 | - |
| 2024 | 29,367 | 19,540 |
| 2025 | - | 71,251 |
| 2026 | - | 80,015 |
| 2027 | - | 58,766 |
| 2028 | - | 21,585 |
Takeaways
Growth. Sales in both residential and commercial sectors have grown significantly in Q3 2024, as overall real estate transactions approach AED 138.8 billion.
- Off-Plan Remains King. The demand for new projects is massive, consuming 65% of the total in this sector.
- Ultra-luxury Market Resilience. Although this segment has seen a small decline, Dubai remains very attractive for high-net-worth buyers.
- Commercial Gains: The commercial sector continued its strong value growth, especially in Business Bay and JLT.
- Future Supply: Dubai’s real estate market is well on track to meet the increasingly growing demand through extensive new supply based on the Dubai 2040 Urban Master Plan .
Ongoing investment in the city’s ongoing infrastructure, coupled with favorable government policies and strong economic prospects, has ensured the real estate market continues to remain dynamic and resilient in the world. Whether an investor, a first-time buyer, or simply following market trends, Q3 2024 turns out to be another record-breaking quarter for Dubai’s loud, boisterous real estate sector.
