Dubai’s real estate overview shows a dynamic and rapidly evolving market that continues to attract global investors.

With its strong economic growth, strategic urban development, and high demand for luxury properties, Dubai’s real estate sector is poised for significant expansion in the coming years.

Dubai Real Estate Metrics Overview for December 2024

In December 2024, Dubai’s real estate market maintained its impressive growth trajectory, building upon the robust performance observed throughout the year.

Overview of Sales Volume, Value, and Price per Square Foot

December 2024 recorded 20,500 property transactions, marking a 6.8% increase from November 2024 and a 38% rise compared to December 2023.

The average price per square foot reached AED 1,580, indicating a 1.3% month-over-month increase and a 9% year-over-year growth.

Total sales value for the month amounted to AED 50 billion, up 5.9% from November 2024 and 22% from December 2023.

Breakdown by Property Type

Apartments: There were 16,200 transactions, a 6.5% increase from November 2024, totaling AED 28 billion in sales. The average apartment price rose to AED 1.4 million, a 3.7% increase from the previous month.

Villas: The market saw 3,200 transactions, a 2.5% increase from November 2024, with a total sales value of AED 14 billion. The average villa price increased to AED 3.1 million, a 3.3% rise from November 2024.

Commercial Properties: There were 450 transactions, a 12% increase from November 2024, contributing AED 950 million in sales. The average commercial property price reached AED 1.65 million, a 6.5% increase from the previous month.

Plots of Land: The market recorded 850 transactions, a 34.5% increase from November 2024, generating AED 7.8 billion in sales. The average plot price rose to AED 5.6 million, a 1.8% increase from November 2024.

These figures underscore the sustained demand and investor confidence in Dubai’s real estate sector as the year concludes.

Property Prices: Apartments, Villas, Commercial Units, and Plots

For Apartments, the average price reached AED 1.4 million, marking a 3.7% increase from November 2024 and a 9% rise compared to December 2023. This growth is attributed to sustained demand, especially in premium locations.

For villas, the average price climbed to AED 3.1 million, a 3.3% increase from the previous month and a 10% year-over-year growth. This trend indicates a continued preference for spacious living environments.

Rental Market Performance

In October 2024, the rental market in Dubai exhibited notable trends across various property types:

• Apartments: The average annual rent rose to AED 86,000, a 2.4% increase from November 2024 and a 20% year-over-year surge. This reflects strong demand among expatriates and short-term renters.
  
  
• Villas: The average annual rent reached AED 190,000, marking a 2.7% month-over-month increase and a 6% rise compared to December 2023.

This indicates sustained interest in larger, family-oriented homes in suburban and luxury districts.

These figures underscore the dynamic nature of Dubai’s rental market, with varying trends across different property segments.

Property Sales by Price Range

In December 2024, Dubai’s real estate market exhibited a diverse distribution of property sales across various price ranges, reflecting the city’s broad appeal to a wide spectrum of buyers and investors.

• Below AED 1 million: Comprised 28% of transactions, highlighting the market’s accessibility to first-time buyers and investors seeking affordable options.
  
  
• AED 1-2 million: Represented the largest segment at 34%, indicating strong activity in the mid-market range, appealing to both end-users and investors targeting properties with favorable rental yields.
  
  
• AED 2-3 million: Accounted for 20% of transactions, reflecting interest in higher-end properties that offer enhanced amenities and prime locations.
  
  
• AED 3-5 million: Made up 10% of Dubai’s property market, showcasing demand for luxury residences among affluent buyers seeking premium features and exclusivity.
  
  
• Above AED 5 million: Constituted 8% of total transactions, underscoring a robust luxury market segment driven by high-net-worth individuals investing in ultra-luxury properties and bespoke developments.

These figures illustrate a balanced distribution of sales across different property types and price points, highlighting Dubai’s diverse real estate market catering to a wide range of buyer preferences and investment strategies.

Monthly Sales Trends

Analyzing the monthly sales volume for 2024 reveals a consistent upward trajectory in Dubai’s real estate market. The year commenced with 11,000 transactions in January, gradually increasing to 12,500 in February and 13,800 in March.

April saw a slight dip to 13,200 transactions, followed by a significant surge in May, reaching 18,000 transactions—the highest for the year at that point.

The momentum continued into the second half of the year, with June recording 17,500 transactions and July experiencing a seasonal slowdown to 16,000 transactions. August rebounded to 17,200 transactions, and September matched May’s peak with 18,000 transactions, indicating a strong finish to Q3 2024.

December surpassed previous months, achieving a record 20,700 transactions, reflecting sustained investor interest and confidence in Dubai’s real estate market.

This consistent growth throughout 2024 underscores the Dubai property market’s resilience and attractiveness to both local and international investors.