Dubai Real Estate Market: A Comprehensive Review of 2024

As 2024 draws to a close, Dubai’s real estate market has solidified its reputation as one of the most dynamic and resilient property sectors in the world. From record-breaking transaction volumes to significant developments in luxury, commercial, and affordable housing, this year has showcased the city’s unwavering appeal to investors and residents alike. With insights from Dubai Real Estate Agency Lupos and their expert Lyudmila Yugai, this article highlights the key trends and milestones that defined Dubai’s real estate market in 2024.

2024 in Numbers: A Market on the Rise

Dubai’s property market maintained its momentum throughout the year, with consistent growth in transaction volumes and property values.

  • Total Transactions: Over 19,200 property deals were recorded in October alone, marking a 35% increase compared to the same period in 2023.
  • Sales Value: AED 47.2 billion in October, a 20% year-on-year rise.
  • Property Prices: The ValuStrat Price Index reported a 19.9% annual growth, underscoring a robust demand for both residential and commercial properties.

Residential Sector: The Foundation of Dubai’s Market

Apartments and villas remained dominant players in Dubai’s residential real estate sector, benefiting from diverse buyer profiles and flexible investment opportunities.

Apartments

  • Average Price: AED 1.35 million, reflecting a steady 3.8% increase from September 2024.
  • Rental Trends: Annual rents rose to AED 84,000, a 19.5% year-on-year increase, driven by demand among expatriates and short-term renters.

    • Villas

    • Average Price: AED 3 million, up 3.4% from September 2024.
    • Rental Trends: Annual villa rents reached AED 185,000, a 5.7% rise compared to 2023.

    This growth was driven by a renewed preference for spacious, family-oriented homes, particularly in suburban areas such as Dubai Hills Estate and Arabian Ranches.

    Commercial Real Estate: Steady Expansion

    Dubai’s commercial property sector experienced remarkable growth, particularly in office and logistics spaces.

    Office Spaces

    • Price Surge: The average price for commercial properties increased by 36.7% year-on-year.
    • Key Trend: The rise of co-working and flexible office spaces, catering to the evolving needs of startups, entrepreneurs, and multinational corporations.

    Industrial and Logistics

    • Growth Drivers: The e-commerce boom and Dubai’s role as a global trade hub have spurred demand for high-tech logistics centers.
    • Developments: Warehousing facilities featuring automation and green technologies gained prominence in 2024.

    Key Trends of 2024

    1. Luxury Real Estate

    Dubai continued to dominate the global luxury property market, with high-net-worth individuals driving demand in areas like Palm Jumeirah and Downtown Dubai.

    • Notable Growth: Properties exceeding AED 10 million saw a 47% increase in transactions in the first half of the year.

    2. Affordable Housing

    The focus on affordability gained momentum, with areas like Jumeirah Village Circle and Dubai Silicon Oasis attracting middle-income buyers.

    • Market Shift: Developers launched new projects to address the growing demand for cost-effective housing.

    3. Long-Term Visas

    Government reforms offering long-term visas for property investors reinforced Dubai’s position as a stable and attractive market.

    • Impact: Increased investor confidence and enhanced appeal for expatriates seeking long-term residency.

    Sustainability and Technology: Paving the Way Forward

    2024 also marked significant advancements in sustainable and smart real estate.

    • Green Buildings: Over 75% of new developments incorporated eco-friendly designs, aligning with global trends toward sustainability.
    • Smart Technologies: Blockchain and AI-powered solutions streamlined property transactions and improved investor experiences.

    These innovations are shaping the future of Dubai’s real estate, ensuring it remains competitive and forward-thinking.

    Projections for 2025 and Beyond

    As Dubai transitions into 2025, the real estate market is expected to build on its strong foundation:

    • New Supply: Approximately 41,000 new residential units are projected for completion in 2025, meeting growing demand across multiple segments.
    • Economic Growth: A forecasted GDP increase of 4.5% will continue to attract investors and businesses.

    Diverse Opportunities: From luxury properties in prime locations to affordable housing in emerging neighborhoods, Dubai offers options for every investor profile.

    Conclusion

    2024 has been a transformative year for Dubai’s real estate market, defined by resilience, innovation, and sustained growth across all segments. Whether it’s luxury living, commercial expansions, or sustainable initiatives, the market continues to deliver exceptional value to investors and residents alike.

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    Published December 2024

    Michael

    PropertyData team

    support@propertydata.co.uk
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    Transparent data promise

    Where does the raw data come from?

    Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

    How often is the data updated?

    The data is updated in near real-time.

    What time period does the data cover?

    This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

    How is the raw data processed?

    Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

    What are the statistics used?

    Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

    How do you know the square footage of properties?

    We use proprietary technology to read the square footage of properties from agent floorplans. Although we cannot determine the square footage for all properties, we can usually get sufficient coverage. Agents are sometimes known to inflate square footage, and this should be borne in mind as a weakness of this data.

    How often is the data updated?

    The data is updated in near real-time.

    What time period does the data cover?

    This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

    How is the raw data processed?

    Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

    What are the statistics used?

    The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property "price paid" data provided by the Land Registry.

    How often is the data updated?

    Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

    What time period does the data cover?

    You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2024-11-29, although some sales that took place before this date may still be added in the coming months.

    How is the raw data processed?

    No additional processes are applied to this data.

    What are the statistics used?

    Averages shown are the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property "price paid" data provided by the Land Registry, and Energy Performance Certificate (EPC) data provided by Department for Levelling Up, Housing & Communities.

    How do you know the square footage of properties?

    We match the Land Registry data to EPC data provided by the Department for Levelling Up, Housing & Communities. Due to the fact that not all properties sold have had an EPC and vagaries of addressing in the UK, we are not able to determine the square footage of all properties, but we can usually get sufficient coverage.

    How often is the data updated?

    The private paid data is updated once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month. The energy performance certificate database is updated monthly.

    What time period does the data cover?

    You can customise the time period using the filter at the top of the view. The default time period is up to 9 months back from today's date. The latest data covers the period up to 2024-11-29, although some sales that took place before this date may still be added in the coming months.

    How is the raw data processed?

    No additional processes are applied to this data.

    What are the statistics used?

    The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

    How often is the data updated?

    The data is updated in near real-time.

    What time period does the data cover?

    This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

    How is the raw data processed?

    Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

    What are the statistics used?

    The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Room let listings on SpareRoom, the UK's biggest room letting website.

    How often is the data updated?

    The data is updated in near real-time.

    What time period does the data cover?

    This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from SpareRoom, they are soon removed from this tab.

    How is the raw data processed?

    Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

    What are the statistics used?

    The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

    How often is the data updated?

    The data is updated in near real-time.

    What time period does the data cover?

    This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

    How is the raw data processed?

    Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale.

    What is the yield calculation used?

    The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

    What are the statistics used?

    The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

    How often is the data updated?

    The data is updated in near real-time.

    What time period does the data cover?

    This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from Zoopla, Rightmove or Spareroom, they are soon removed from this tab.

    How is the raw data processed?

    Duplicates from multiple sources are matched and reconciled as far as possible. Yields are calculated by comparing only properties with the same number of bedrooms, e.g. 3-bedroom properties for rent with 3-bedroom properties for sale. For the SpareRoom data, hypothetical properties consisting of two to six average double rooms with shared bathrooms are used to derived average rent. For all sources, listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

    What is the yield calculation used?

    The calculation used is (average_weekly_asking_rent * 52 / average_asking_price), expressed as a percentage. It is a top-line gross yield, meaning no expenses are considered.

    What are the statistics used?

    The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property "price paid" data provided by the Land Registry.

    How often is the data updated?

    Once per month when released by the Land Registry, typically towards the end of each calendar month covering up to the end of the previous calendar month.

    Zoopla Zed-index

    What time period does the data cover?

    The data covers transactions in the last six years

    How is the raw data processed?

    No additional processes are applied to this data.

    What are the statistics used?

    The average shown is the interquartile mean, a type of average that is insensitive to outliers while being its own distinct parameter. The 80% range means that 80% of the listed properties fall inside this range.

    Where does the raw data come from?

    Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

    How often is the data updated?

    The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

    What time period does the data cover?

    The price paid data shown goes back to January 2015. The listings data is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

    How is the raw data processed?

    Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

    What are the calculations used?

    Average sales per month are for the last 3 finalised months. Turnover is average sales per month divided by total for sale. Inventory is 100 divided by turnover.

    Where does the raw data come from?

    Property listings seen on rightmove.co.uk, zoopla.co.uk and onthemarket.com.

    How often is the data updated?

    The listings data is updated in near real-time. The Land Registry data is updated once per month when released, typically towards the end of each calendar month covering up to the end of the previous calendar month.

    What time period does the data cover?

    This is a real-time market snapshot - the data covers currently listed properties. Once properties are removed from the portal, they are soon removed from this tab.

    How is the raw data processed?

    Duplicates from multiple sources are matched and reconciled as far as possible. Listings with obvious errors, where price or number or bedrooms appear out of range, are discarded.

    Where does the raw data come from?

    We receive data on the extent and corporate ownership of all land titles in England & Wales from the Land Registry.

    How often is the data updated?

    The data is updated once per month when released, typically in the first few days of each calendar month.

    What time period does the data cover?

    This is an ownership snapshot - the data represents ownership as recorded by the Land Registry at the last monthly export.

    How is the raw data processed?

    No additional processes are applied to this data.

    Where does the raw data come from?

    We source different expert forecasts Savills, Knight Frank, OBR

    How often is the data updated?

    The data is updated annually when new forecasts are released, typically towards the beginning of the year.

    How is the raw data processed?

    We calculate a consensus forecast using a simple mean average.