Record-Breaking Transactions and Sales Value
Dubai’s residential real estate market has experienced remarkable growth in the first half of 2024. According to Engel & Völkers Middle East, the sector recorded 77,233 transactions, marking a 33.5% increase year-over-year. The total sales value surged to AED 227 billion (approximately $62 billion), reflecting a 31% rise compared to H1 2023. This impressive performance underscores strong investor confidence and sustained demand in Dubai’s property market.
Off-Plan Market and Popular Communities
The off-plan segment significantly contributed to this growth, accounting for over 60% of overall transactions. Aggressive new development prices, flexible payment plans, and high returns on investment have attracted many investors to new projects. Popular areas such as Jumeirah Village Circle, Dubai South, and Damac Hills 2 have emerged as top choices due to their affordability, modern amenities, and strategic locations.
Apartment Sales Lead the Way
Apartments have been the primary driver of transaction growth, representing 91% of the increase. With apartment sales comprising over 80% of all transactions, their popularity, availability, and higher returns have spiked demand by 41% year-over-year. Jumeirah Village Circle remains one of the most sought-after areas for both off-plan and secondary market transactions, thanks to attractive pricing and a steady supply of projects.
Villa Segment Growth
Although the villa segment is smaller, it posted strong year-on-year growth in H1 2024, with a 52% increase in the number of transactions and a 66% rise in total sales value. Demand has been driven by families seeking more space and sophisticated buyers looking for primary properties. New communities like The Acres, Dubai South, and Haven have fueled off-plan villa sales with their prime locations and lifestyle amenities.
Resilience and Market Performance
Despite the challenges posed by the April floods, Dubai’s real estate market has demonstrated resilience. May 2024 saw an unprecedented 20% increase in transactions compared to previous monthly records, highlighting the market’s strength. Key ongoing infrastructure projects, such as an $8 billion drainage system, a $35 billion Al Maktoum Airport expansion, and a $5 billion Dubai Metro Blue Line development, have further bolstered confidence in the market.
Luxury Market Grows
Dubai’s luxury real estate sector also experienced significant growth, with a 47% year-over-year increase in transactions. The UAE continues to attract millionaires from around the world, fueling demand for high-end villas and branded residences. Palm Jumeirah remains the leading luxury community, followed by Mohammed Bin Rashid City and Dubai Hills Estate. Other developing areas appealing to luxury buyers include the Dubai Islands and Palm Jebel Ali.
Positive Outlook
Daniel Hadi, Chief Executive at Engel & Völkers Middle East, described the growth in Dubai’s residential real estate market as extraordinary in H1 2024. He attributed this success to the emirate’s resilience, strategic infrastructure investments, and its appeal to global investors. With Dubai’s population growing by over 100,000 annually and the economy expected to expand by 4% this year, the prospects for the city’s real estate market remain very bright.
