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Dubai residential property sales surge 31% in second half

Dubai Marina, Downtown Dubai and Palm Jumeirah have solidified their position as top areas for buying luxury apartments

Residential real estate sales in Dubai rose 31 per cent year on year in the second half of 2024 to Dh232 billion, a report showed on Wednesday.

A report published by Espace Real Estate cements a phenomenal year of sector growth. The off-plan market significantly outpaced the secondary market in both value and volume. 61,435 off-plan sales (up 74 per cent year on year) drove value to Dh127 billion (up 51 per cent year on year), complemented by a robust secondary market amassing a volume of 32,487 transactions (up 15 per cent year on year).

Investor appetite is fueled by Dubai’s ongoing population growth resulting in exceptionally high activity in the off-plan market with the off-plan market now making up more of the overall transactions in the second half of the year - 65 per cent compared to 61 per cent in H1.

Average prices increased in 19 of the 20 villa communities tracked, as well as 10 of the 11 apartment communities. High demand and reduced availability in the wake of so many renters converting to homeowners sees properties in Springs (+26 per cent), Jumeirah Park (+23 per cent), Town Square (+21 per cent) and many others secure notable price increases.

Widespread developer refurbishment and new luxury villa offerings in Jumeirah Islands (+26 per cent), Jumeirah Golf Estates (+35 per cent) and Dubai Hills (+27 per cent) have further influenced average sales prices in established communities, while newer communities like Al Furjan (+26 per cent) get a boost from buyers looking for value after being priced out of neighbouring communities. According to Espace Real Estate’s own data, mortgage leads generated are up 111 per cent year on year, facilitating transactions as residents lay down long-term roots in Dubai.

Newer apartment communities are also experiencing rising transaction volumes alongside increasing sales prices. Emaar Beachfront saw a 34 per cent rise in transaction volume as buildings were handed over to new owners. Similarly, Jumeirah Village Circle (JVC) recorded a (28 per cent) increase in transactions, driven by the area’s ongoing expansion and the influx of new projects and residents. Notably, 24 new projects were completed in JVC alone in 2024, further fueling its growth.

Many new residents are entering the demand pool alongside established residents, with population growth up 65 per cent in the last 10 years and 10 per cent in the last 3 years. The report reflects a shift in prominent buyer demographics, with six of Espace’s top ten buyer nationalities from Western European countries.

John Lyons, managing director, Espace Real Estate said: “Four of these nations rank among the top ten globally for national GDP, underscoring Dubai’s growing reputation as a magnet for global wealth. This trend reflects the sustained post-Covid appeal of Dubai to European buyers who are drawn by the city’s exceptional lifestyle, safety and strong returns on capital investment.”

The report projects further population growth alongside new property supply in the pipeline, comprising approximately 80 per cent apartments, demonstrating how dependent the city is becoming on new launches to keep up with demand. According to Property Monitor, a new property project launched every 18 hours in Q1 of 2024. .

In the second half of 2024, off-plan sales volume represented 65 per cent of transactions and amounting to Dh127 billion in value.

In the 20 villa and townhouse communities tracked, transactions were down nine per cent while 19 out of 20 saw continued sales price increases, led by Jumeirah Golf Estates (+35 per cent), Arabian Ranches (+27 per cent) and Dubai Hills (+27 per cent).

In apartment sales, more availability and price variability saw transaction volume continue to increase (+12 per cent), with prices also increasing across 10 of the 11 communities tracked.

Espace’s number of viewings increased 30 per cent to 8486 compared to H2 2023, with buyer registrations up 10 per cent.

Rental volume falls

In the rental market, average rents continued to soar in most communities. “High rental prices, limited rental supply, affordable mortgage products and ongoing population growth encourage many tenants to opt for homeownership if they are in the financial position to do so,” the Espace report said.

While villa and townhouse rental transactions decreased by 14 per cent, volume in apartment rentals is down by 6 per cent - a less dramatic decrease due to new building completions in communities like Emaar Beachfront (98 per cent).

Hot property

Meanwhile, according to data from classifieds portal dubizzle, Dubai Marina, Downtown Dubai and Palm Jumeirah have solidified their position as the top three leading areas for buying luxury apartments in Dubai for 2024. The increase in their appeal has been attributed to their proximity to prominent landmarks and attractions.

Dubai Marina has stood out as the preferred choice for buying and renting luxury apartments. The average sales price in this high-demand area has reached Dh2.55 million, while annual rent has been recorded at Dh145,000, as per dubizzle search trends.

Boasting an average sales price of Dh16.07 million, Dubai Hills Estate has maintained its position as the top area for luxury villas. On the other hand, Al Barsha has become the top choice among tenants where the average rent has stood at Dh436,000.

Al Barari has recorded the highest return on investment (ROI) for luxury villas at 7.39 per cent. Meanwhile, Green Community has topped the luxury apartment segment with a notable ROI of 8.48 per cent for 2024.

Jumeirah Village Circle (JVC) secured the position as the top area for buying and renting mid-tier apartments, with an average sales price of Dh1.12 million and annual rent of Dh78,000.

CEO of dubizzle and Dubizzle Group MENA, Haider Ali Khan, said: “Dubai’s real estate market has truly outdone itself, hitting new heights in 2024, with over Dh500 billion in business between November 2023 and November 2024. It’s clear that this dramatic growth is driven by the government’s proactive initiatives including the revised property visa offerings and expansion of freehold areas. Considering the robust economic progress of Dubai and the announcement of major infrastructure projects like the Dubai Metro Blue Line and Al Maktoum Airport, this momentum is unlikely to slow down any time soon. The demand for properties is at an all time high with the off-plan sector in particular showing unprecedented interest. As the UAE’s leading real estate platform, at dubizzle, we remain committed to supporting this growth by offering comprehensive listings of off-plan developments ‘including ‘Verified Properties’’ across all segments—affordable, mid-tier and luxury. At dubizzle, we’re proud to fuel this growth while empowering everyone to make informed decisions.”