According to leading real estate advisory and property consultant, Cavendish Maxwell Dubai’s residential property sector has 243,000 units in the pipeline from now until the end of 2027. Among them, apartments are accounting for 80% of future inventory supply.
Price Appreciation and Market Scenario
If you’re thinking about investing in Dubai’s property market, you’ll be glad to hear that property values keep going up. At the end of 2024, December saw a 0.9% rise from the month before leading to a 3.1% increase compared to the last three months. When you look at the numbers from one year to the next, you’ll notice a big 16.5% jump in property prices.
To give you a clearer picture, the price per square foot hit AED 1,493 in December 2024. This shows a staggering 90% jump from the market’s lowest point in April 2009. The numbers will also blow you away. The market saw a record-breaking 169,000 sales showing a huge 42% jump from 2023.
As you keep looking at market trends, you’ll see that Dubai’s residential property market has grown in price for 47 months in a row. While past months had jumps of up to 2.5%, new data shows a more stable monthly growth of about 1%.
Booming Mortgage Activity
Mortgage is a very important parameter in the real estate market. In 2024, UAE banks gave out a record 36,600 mortgage loans, which is almost a third more than in 2023. This rise in mortgage lending shows that people trust the market more and can get property loans more . This boost in mortgage activity is a good sign that the real estate market is healthy and growing.
The Dominance of Off-Plan Properties
While checking out property choices in Dubai, you’ll soon see how big a deal off-plan properties are. They’re shaking up the market, with sales now four times what they were before Covid hit. Just in 2024, developers put out almost 145,000 new off-plan units – that’s about 400 new places to live popping up each day.
If you’re thinking about investing in off-plan properties, you’ll notice big names like Emaar Properties, Danube Properties, Binghatti Properties, and DAMAC Properties. The fact that off-plan properties are so popular right now shows that investors have faith in Dubai’s growth.
Future Supply and Market Projections
As already mentioned, Dubai’s residential property sector has a pipeline of 243,000 units to deliver between now and the end of 2027. As you plan to invest, keep in mind that apartments will dominate this future inventory, making up 80% of the upcoming units.
When you break down the future supply by area, you’ll see that Jumeirah Village Circle tops the list with almost 25,000 units set to deliver by 2027. Other areas to watch include Business Bay (16,000 units), Azizi Venice (13,500 units), Damac Lagoons (11,100 units), and Arjan (9,000 units).
At buyer preferences, you’ll see a clear trend toward apartment living. In 2024, apartments made up 81% of residential property purchases, showing a 3% rise from the year before. Townhouses grabbed 13% of the market share, while villas accounted for 6% of purchases.
This move toward apartment living shows the changing demographics and lifestyle choices in Dubai. As you think about buying or investing in property, these trends can help guide your choices.
Hotspots and High-Performing Areas
When you’re looking for property hotspots, there are many high performing areas in Dubai. In 2024, Mohammed Bin Rashid City topped the list with 5,300 supplies. Other neighborhoods with a bunch of new properties include Jumeirah Village Circle (4,800 units), Business Bay (2,800 units), Al Furjan (2,600 units), and Rukan, Dubailand (1,500 units).
Jumeirah Village Circle (4,048) topped the sales transaction charts in title deed and off-plan categories. Business Bay (3,400), Dubai Marina (2,963), Downtown Dubai (2,289) and International City (1,927) completed the top five for title deed transactions. In the off-plan market, Business Bay, (6,779 ) Dubai Hills (5,487), Mohammed Bin Rashed City (4,156) and Sobha Hartland II (3,957) trailed Jumeirah Village Circle (11917) in transaction numbers.
Price Trends Across Dubai
When you look at price trends in different parts of Dubai, you’ll see that prices increased at different rates. Apartment prices in Barsha Heights went up the most, with a 33% increase from the previous year in Q4 2024. Dubai Silicon Oasis and Jumeirah Lakes Towers also did well, with prices going up by 24% and 21%.
Keep in mind that prices didn’t go up everywhere. Dubai Production City saw prices drop by 6%, while Bluewaters Island and Mohammed Bin Rashid City had small price drops of 4% and 2%.
Nad Al Sheba topped the list for villas and townhouses showing a huge 54% price jump in Q4 2024 vs Q4 2023. Jumeirah Village Triangle and Dubai South weren’t far behind, with prices going up by 33% and 29%.
What’s Behind the Market Boom
Why is Dubai’s property market doing so well? A few things have helped it thrive. The city’s prime spot on the map, top-notch buildings and roads, and business-friendly rules keep drawing in folks from other countries who want to invest or live there.
Dubai’s global standing has grown stronger due to its effective COVID-19 response and its role as host for Expo 2020 Dubai (held in 2021-2022 because of pandemic delays) and ICC Champions Trophy 2025. These events have shown Dubai’s skill in managing big international events.
What’s more, Dubai has changed its residency rules. It brings some interesting strategies like Dubai 2040 urban plan, Real Estate Strategy 2033 and Economic strategy 2033 and also offers long-term visa and Golden Vias to investors and skilled workers. This change has boosted the property market, as more people want to set up home in the emirate.
International Demand
When you check out where international buyers come from, you’ll see that people from India, China, and other Middle Eastern countries have bought a lot of property in Dubai. This mix of foreign interest shows Dubai’s worldwide appeal and its status as a safe spot to invest in real estate.
If you think about joining these foreign buyers, you’ll like Dubai’s zero-tax setup, high rent returns, and the chance for your property to go up in value. The city’s mix of cultures, along with its top-notch facilities and safety, makes it a great place to live and invest.
Conclusion
Dubai’s property scene in 2024 is booming, with lots of sales, higher prices, and plans for new buildings. The market stays tough and keeps pulling in buyers from other countries, which looks good for what’s coming.
If you’re interested in buying a property in Dubai, whether to live in or to make money, you’ve got plenty of choices. You can spot all sorts of homes, from luxury houses in new spots to up-to-date apartments in the heart of town, matching different likes and how much you can spend.
Before jumping into Dubai’s property scene, do your homework, talk to experts, and keep an eye on what’s happening in the market and with the rules. Dubai’s property market shows promise and has some great chances for people who want to get in on a booming real estate scene.
