Dubai’s real estate market, which reached new benchmarks in 2024, is on the cusp of stabilization as over 72,000 residential units are expected to enter the market in 2025. Despite the anticipated moderation in price growth, the sector remains buoyed by robust demand, fueled by population growth and innovative developments.
Record-Setting Year in 2024
In 2024, Dubai recorded 68,405 total sales transactions, achieving an unprecedented transaction value of AED 423.36 billion—a 30% increase in value and a 40% rise in volume compared to 2023, according to Betterhomes. Louis Harding, CEO of Betterhomes, praised the city’s resilience and innovation, saying, “2024 has been a landmark year solidifying Dubai’s position as a global real estate leader.”
Drivers of Growth: Off-Plan and Luxury Segments
The off-plan market was a significant driver, accounting for 63% of all transactions and showing a 66% year-on-year growth. The secondary market also saw a 14% increase, catering to end-users seeking immediate ownership.
The luxury segment reached new heights, with 1,938 secondary market transactions involving properties over AED 15 million, marking a 63% increase from the previous year. Notable transactions included a AED 240.5 million villa on Jumeirah Bay Island and a AED 275 million apartment at The One on Palm Jumeirah. Additionally, 40 super-prime transactions exceeding AED 100 million highlighted Dubai’s appeal to high-net-worth individuals.
Enhancing Market Transparency in 2025
The launch of the Smart Rental Index in 2025 is set to enhance transparency and fairness in rental pricing, further strengthening investor confidence in the market.
Vision for the Future
As Dubai continues to evolve, the Dubai Urban Plan 2040 outlines a visionary framework focusing on five key urban hubs: Deira and Bur Dubai, Downtown and Business Bay, Dubai Marina and Jumeirah Beach Residence, Expo 2020 Center, and Dubai Silicon Oasis. These districts aim to accommodate a projected population of 5.8 million permanent residents and an additional 2.1 million professionals and visitors.
With its resilience, innovation, and strategic planning, Dubai remains an attractive destination for investors and homebuyers seeking diverse opportunities in a dynamic real estate market.
