This guide will help you understand the market by looking at sales numbers, prices, rental income, and new projects. We’ll give you the information you need to make smart choices in Dubai’s exciting real estate market.
Dubai Property Sales Reach All-Time High in 2024
Dubai property market had a great year in 2024. There were 169,000 property sales, which is 42% more than the year before. This shows how popular Dubai real estate is.
Property prices went up too. In December 2024, prices were 0.9% higher than in November, 3.1% higher than three months earlier, and 16.5% higher than the year before. The average price is now AED1,493 (about $407) per square foot.
To show how much the market has grown, current prices are over 90% higher than at their lowest point in April 2009. This big increase shows that Dubai is a strong and attractive place to invest in real estate.
47 Months of Continuous Price Appreciation
Looking at market trends, you’ll see that Dubai’s home prices have been going up for almost 4 years. But now, prices are rising more slowly - about 1% each month instead of 2.5%. This slower growth is actually a good thing. It means the market is becoming more stable, which could be better for long-term investments.
Mortgage Activity and Off-Plan Sales Surge
Thinking about getting a mortgage in Dubai? Good news! In 2024, banks gave out more loans than ever before - 36,600 in total. That’s about 33% more than in 2023, showing that banks trust the market and want to help buyers like you.
Off-plan properties (properties you buy before they’re built) are really popular right now. Sales have grown four times compared to before COVID-19. In 2024, developers introduced 145,000 new off-plan properties - that’s about 400 new properties every day! This gives you lots of choices and chances to make money as these projects finish.
Big companies like Emaar , Binghatti and DAMAC are leading the way in building new properties. Right now, 68% of all properties for sale in Dubai are Off-plan sales. This means there will be plenty of new properties coming to the market in the future.
Dubai Real Estate Market Composition
In Dubai’s real estate market:
- Apartments are the most popular, making up 81% of home sales in 2024 (up 3% from last year).
- Townhouses were 13% of sales (down 1%).
- Villas were 6% of sales (down 2%).
New properties built in 2024:
- Mohammed Bin Rashid City: 5,300
- Jumeirah Village Circle: 4,800
- Business Bay: 2,800
- Al Furjan: 2,600
- Rukan, Dubailand: 1,500
Future home building plans (until 2027):
- Jumeirah Village Circle: 25,000
- Business Bay: 16,000
- Azizi Venice: 13,500
- DAMAC Lagoons: 11,100
- Arjan: 9,000
Top Performing Dubai Neighborhoods
When thinking about where to invest, it’s important to know which areas have seen the biggest price increases. For apartments, Barsha Heights had the highest increase at 33% in late 2024 compared to the same time in 2023. Dubai Silicon Oasis and Jumeirah Lakes Towers also did well, with increases of 24% and 21%.
For villas and townhouses, Nad Al Sheba had the biggest increase at 54% in late 2024 compared to late 2023. Jumeirah Village Triangle and Dubai South also had big increases of 33% and 29%.
However, some areas saw small decreases in prices. Dubai Production City’s apartment prices went down by 6%, while Bluewaters Island and Mohammed Bin Rashid City had small decreases of 4% and 2%.
Dubai Rental Market
Dubai offers good rental returns. In 2024, apartments averaged 7.4% yields, while villas and townhouses averaged 5.1%. The best area for returns was Dubai Investments Park at 10.3%.
Most tenants pay rent in two installments (40%) or one lump sum (35%). Some pay quarterly (18.5%). As a landlord, offering flexible payment options can help attract tenants.
Rental prices increased differently across Dubai in 2024:
Apartments:
- Highest increase: Dubai South (30%)
- Lowest increases: Palm Jumeirah (5%), Al Habtoor City (3%), Bluewaters Island (1%)
Villas and townhouses:
- Highest increase: Palm Jumeirah (52%)
- Other big increases: Al Furjan (39%), Dubai Investments Park (38%)
Future Supply and Market Outlook: What’s Next for Dubai Real Estate?
As you plan your investment strategy, it’s crucial to consider the future supply pipeline. Dubai’s residential property sector has an impressive 243,000 units scheduled for delivery between now and the end of 2027, with apartments making up 80% of this upcoming inventory. Another The ValuStrat report estimates that 118,401 apartments and 28,351 villas and townhouses are under construction, with a promised handover by 2028.
Key areas with significant future developments include:
- Palm Jumeirah
- Dubai Hills
- Dubai Marina
- Jumeirah Village Circle
- Jumeirah Village Triangle
- Al Furjan
- Dubai Silicon Oasis
- Town Square
- Studio City
Expert Insights
Experts in the field offer reassuring insights about the market. Ronan Arthur, a partner at Cavendish Maxwell, says:
“The market’s strong performance isn’t just due to post-pandemic recovery. It shows steady growth since 2022, with high demand from international buyers, especially from India, China, and Middle Eastern countries.”
Arthur expects more growth in 2025, but at a slower, more sustainable pace. This suggests the market will remain stable and profitable in the long run.
Mohammed Tahaineh, general manager of projects at Damac, highlighted “Dubai’s rapid population growth and its position as a global hub for investment continue to drive strong demand for housing.”
This meant the property sector was having to rise to meet this demand by looking at “innovative solutions”. Another expert said UAE residents could expect to see the cost of renting or owning a property increasing this year but perhaps not as much as first feared.
“With over 72,000 units scheduled for handover in 2025, the market will see a significant increase in supply, helping to balance the demand that has driven up property prices in recent years,” said Christopher Cina, development sales and consultancy director at Betterproperties.
After releasing Savil’s global rankings report, where Dubai Outpaces London, Hong Kong, and New York, Cummings added “As we progress into 2025, Dubai’s property market is expected to maintain its upward trajectory, outpacing global markets such as London, Hong Kong, and New York. With sustained demand for branded residences, waterfront developments, and sustainable luxury properties, the city is poised to strengthen its position as a world-class hub for prime residential investment.”
Conclusion
Dubai real estate market offers several opportunities for investors. Sales are high, prices are increasing, and fare income is strong. It makes Dubai a top position for real estate worldwide.
You can find many types of qualities in Dubai. These include luxury apartments in the city center, large villas near the beach, or new buildings in growing areas. There is something for every budget and preference.
When purchasing property in Dubai, think about:
- Location
- Supply Scenario
- Rental Potential
- Surrounding Future Growth
To make good options, be informed and work with reliable local experts. This can help in earning money from your investment.
Dubai’s real estate market is still growing. With a good plan, you can be part of this exciting opportunity. Why not start looking at properties in Dubai today? This can be the beginning of a successful investment.
