Residential property sales in Dubai soared by 31% during the second half of the year.
Residential property sales in Dubai soared by 31% during the second half of the year.
Blog Article
Dubai Real Estate Market Report: H2 2024
Residential real estate sales in Dubai surged by 31% year-over-year, reaching Dh232 billion in the second half of 2024, according to a report by Espace Real Estate. The off-plan market dominated, contributing Dh127 billion (+51% YoY) with 61,435 transactions (+74% YoY), while the secondary market recorded 32,487 transactions (+15% YoY).
Key Market Drivers:
Population Growth: Dubai’s population realtor agencies increased by 10% over the last three years, fueling demand, particularly in the off-plan sector, which accounted for 65% of transactions in H2 2024.
Community Price Increases: Villa and apartment prices soared in most communities. Established neighborhoods like Springs (+26%) and Dubai Hills (+27%) saw price hikes, while newer areas like Al Furjan (+26%) gained traction due to value-seeking buyers.
Western European Investment: Six of the top 10 buyer nationalities are from Western Europe, drawn by Dubai’s lifestyle, safety, and strong returns.
Sector Highlights:
Off-Plan Growth: Supported by mortgage accessibility (+111% mortgage leads YoY), off-plan sales remain a key driver, with 80% of upcoming developments being apartments.
Luxury Market: Dubai Marina, Downtown Dubai, and Palm Jumeirah led luxury property sales, with Dubai Hills Estate dominating villa transactions at an average price of Dh16.07 million. Al Barari delivered the highest ROI for mansions at 7.39%.
Mid-Tier Segment: JVC emerged as the best mid-tier investment location, with average sales at Dh1.12 million and rents at Dh78,000.
Rental Market Trends: High rents and limited supply pushed tenants toward homeownership. While villa rentals dropped by 14% and apartment rentals by 6%, new developments like Emaar Beachfront eased some supply constraints.
Market Outlook:
Dubizzle’s CEO Haider Ali Khan emphasized the market’s record-breaking Dh500 billion activity over the past year. Factors like revised property visa policies, freehold expansions, and infrastructure projects (e.g., Dubai Metro Blue Line) ensure sustained growth.
Source: Propertynews
Report this page