Dubai’s residential property market has once again demonstrated its resilience, with prices surging by 19.1% over the past year, reaching an average of AED 1,685 ($459) per square foot, according to the Dubai Residential Market Q4 2024 report by global property consultancy Knight Frank. This increase has pushed prices 13.3% higher than their previous 2014 peak.
Luxury Villas in High Demand
The villa segment continues to outperform, with sale prices skyrocketing by 20.2% over the last 12 months to reach AED 2,009 ($547) per square foot. This marks an astonishing 38.1% increase above 2014 levels, reinforcing the strong global appeal of Dubai’s premium residential market.
According to Faisal Durrani, Partner – Head of Research, MENA, the demand for real estate remains robust, with more genuine end-users entering the market. The city witnessed a 30% drop in available homes for sale in 2024, with the prime luxury segment experiencing a 52% decline in listings.
Dubai’s Supply Outlook
Knight Frank reports that Dubai is set to complete 302,880 new homes by 2029, with:
- 80% allocated to apartments
- 18% to villas
- 2% to branded residences
Although this equates to around 60,576 homes per year, history suggests a 30% lag in actual completions, meaning supply constraints could continue to drive up prices.
Prime Market’s Record-Breaking Performance
Dubai’s high-end real estate market remains a magnet for international buyers, particularly in Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills.
Key highlights:
- Prime residential prices rose 16.9% in 2024, reaching AED 6,627 ($1,805) per square foot.
- The number of $10 million+ properties fell by 40%, with listings dropping from 4,119 to 2,491.
- Homes in the $25 million+ category saw an 85% decline, from 583 to just 86 available listings.
- 435 luxury home sales exceeding $10 million were recorded in 2024, with 153 transactions in Q4 alone, marking the highest number ever recorded in a single quarter.
What’s Driving the Boom?
Dubai’s appeal remains strong due to its high-end lifestyle offerings, green spaces, wellness amenities, and waterfront properties, all of which continue to attract high-net-worth international buyers. The market’s shift towards genuine end-users rather than speculative buyers is also shaping a more sustainable growth pattern.
As 2025 approaches, all indicators suggest that Dubai’s real estate market will continue its upward trajectory, fueled by increasing demand and limited high-end supply.
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