Dubai’s real estate sector achieved remarkable results in Q3 2024, setting new records with 50,425 transactions—the highest number ever recorded in the city’s history. This represents a 38% increase year-on-year, signaling a robust and dynamic market. These transactions generated a total sales value of AED 141.95 billion, reflecting a 30% year-on-year increase, and reinforcing Dubai’s position as a global real estate powerhouse.
This surge in activity spans across both the residential and commercial sectors, driven by favorable regulations, visa reforms, and the continued influx of international investors. The exceptional performance in Q3 2024 redefines Dubai’s real estate landscape, establishing new benchmarks for both transaction volume and sales value.
Unprecedented Project Activity: A Strong Signal of Investor Confidence
Q3 2024 also marked a record-breaking period for project activity, with 146 new projects registered—making it the busiest quarter in Dubai’s history. This level of activity highlights the continued demand for new developments, underscoring investor confidence in Dubai’s long-term growth prospects. In addition to new registrations, 21 projects were completed, delivering 5,183 new units to the market, further strengthening supply in response to soaring demand.
Rental Market Hits New Highs
Dubai’s rental market followed a similar trend, with new rental contracts reaching their highest levels since Q4 2021, a period marked by the city’s post-pandemic recovery. The growing demand for rental properties, driven by an influx of expatriates and new residents, reflects the continued expansion of Dubai’s economy and its appeal as a regional hub for business and talent.
- Median rents for apartments increased to AED 68,000, a 19.3% year-on-year rise.
- Villas saw median rents rise to AED 180,000, reflecting a 5.88% year-on-year increase.
This robust rental market, coupled with rising rental yields, continues to attract global investors looking for strong returns in a market with relatively low barriers to entry.
Consistency in Top-Selling Areas
Dubai’s most sought-after locations showed continued demand. Jumeirah Village Circle (JVC), Dubai Hills Estate, and Sobha Hartland 2 led the charge in apartment sales:
- JVC dominated the 1st Sale Apartments category, with 3,140 units sold, followed by Sobha Hartland 2 with 2,066 units and Dubai Hills Estate with 1,900 units sold.
For 1st Sale Villas, Al Yufrah 1 led with 1,250 units sold, totaling AED 4.4 billion in value, closely followed by Dubai South and Madinat Hind 4. In the resale market, high activity was observed in Dubai Marina, JVC, and Business Bay for apartments, while Wadi Al Safa 5 and Al Hebiah Fifth emerged as leading areas for resale villas.
Prices Surge as Demand Continues to Grow
The market also saw significant price increases across key segments in Q3 2024, driven by sustained demand for prime properties:
- 1st Sale Apartments were priced at AED 1,758 per square foot, a slight decrease of 1.00% year-on-year, but still 44.7% higher than in 2014.
- Plots in the 1st Sale segment saw a 74.50% year-on-year price increase, reaching AED 1,147 per square foot.
- Villas in the 1st Sale category rose by 18.40% year-on-year, reaching AED 1,427 per square foot.
- Resale Properties showed similar upward momentum, especially in the commercial sector, where prices per square foot jumped 20.10% year-on-year to AED 1,242. Resale Apartments reached AED 1,301 per square foot, marking a 5.60% increase, and resale villas saw steady demand with prices rising 15.40% year-on-year to AED 1,295 per square foot.
Looking Ahead: Continued Growth on the Horizon
The record-breaking results of Q3 2024 signal a sustained bullish trend in Dubai’s real estate market, which remains resilient despite global economic challenges. Analysts expect continued growth through Q4 2024 and beyond, although at a more measured pace due to rising interest rates and broader global economic factors.
Dubai’s real estate market remains attractive to global investors, bolstered by favorable government policies, new visa regulations, and substantial infrastructure development. The Dubai 2040 Urban Master Plan is set to further enhance the city’s appeal, ensuring a dynamic and evolving market for years to come.
Conclusion: Dubai’s Real Estate Market Redefines Global Standards
Dubai’s property sector has firmly established itself as a leader in global real estate, with record-breaking sales, unprecedented project activity, and continued demand across all market segments. As the city continues to expand, both in terms of infrastructure and population, Dubai’s real estate market is poised to maintain its momentum, offering new opportunities for investors, developers, and residents alike.
The performance in Q3 2024 showcases the city’s resilience, drawing a clear path toward further growth and setting new standards for the global real estate market. With high demand, increasing prices, and expanding development, Dubai is reaffirming its position as one of the world’s most dynamic and attractive real estate destinations.
