Dubai Real Estate Market Sets New Records in Q3 2024, Defying Global Trends

 

  • Dubai’s real estate market continued to break records in Q3 2024, with transaction volumes, sales values, and project registrations all hitting unprecedented levels. Investor confidence remains high as Dubai solidifies its position as a global real estate powerhouse, reflecting both resilience and growth potential amid fluctuating global economic conditions.

    Table of Contents

    Record-Breaking Transactions and Sales Values

    Dubai’s property sector delivered exceptional results in Q3 2024, with a staggering 50,425 transactions—the highest number ever recorded—marking a 38% increase year-on-year. These transactions generated a total sales value of AED 141.95B, reflecting a 30% rise compared to Q3 2023.

    The market’s relentless momentum highlights growing demand across both residential and commercial sectors, driven by favorable regulations, visa reforms, and a constant influx of international buyers. With these figures, Dubai has firmly redefined its real estate landscape, setting new benchmarks in volume and value.

    Unprecedented Project Activity

    A standout feature of Q3 2024 was the 146 projects registered, making it the most active quarter in Dubai’s history. This milestone underscores the sustained appetite for new developments, reinforcing investor trust in Dubai's long-term growth prospects. Alongside new registrations, the quarter also saw 21 projects completed, bringing 5,183 new units to the market, further fueling supply to meet soaring demand.

    Rental Market Hits New Highs

    Dubai’s rental market mirrored the explosive activity in sales, with the number of new rental contracts reaching levels not seen since Q4 2021, a period that marked the city’s resurgence post-pandemic. The high demand for rental properties, driven by expatriates and new residents, reflects the continued influx of talent and investment into the region.

    Median rents for apartments jumped to AED 68,000, a 19.3% year-on-year increase. Villas saw median rents rise to AED 180,000, up 5.88% year-on-year.

    With such steep rises, rental yields in Dubai continue to attract attention from global investors seeking strong returns in a market with limited barriers to entry.

    Top-Selling Areas Show Consistency

    Dubai’s most sought-after locations retained their appeal, with Jumeirah Village Circle (JVC), Dubai Hills Estate, and Sobha Hartland 2 leading the charge in apartment sales. The 1st Sale Apartments category saw JVC dominate with 3,140 units sold, followed by Sobha Hartland 2 with 2,066 units, and Dubai Hills Estate with 1,900 units.

    For 1st Sale Villas, Al Yufrah 1 led with 1,250 units sold, worth a total of AED 4.4B, closely followed by Dubai South and Madinat Hind 4. Resale Apartments saw high activity in Dubai Marina, JVC, and Business Bay, while Wadi Al Safa 5 and Al Hebiah Fifth emerged as the frontrunners in Resale Villas.

    Prices Climb as Demand Grows

    The quarter also saw notable changes in price per square foot across key categories:

    • 1st Sale Apartments were priced at AED 1,758 per sqft, slightly down by 1.00% YoY, but still 44.7% higher than in 2014.
    • Plots in the 1st Sale segment surged with a 74.50% YoY growth to AED 1,147 per sqft.
    • Villas in the 1st Sale category rose by 18.40% YoY, to AED 1,427 per sqft, indicating sustained interest in larger residential properties.

    Resale properties also showed upward momentum, particularly in the commercial sector where price per square foot jumped 20.10% YoY to AED 1,242. Resale apartments reached AED 1,301 per sqft, marking a 5.60% increase, while resale villas continued to see steady demand with prices rising 15.40% YoY to AED 1,295 per sqft.

    Looking Ahead

    As Dubai’s real estate sector continues to break new ground, record-breaking performance has become the norm rather than the exception. The robust figures from Q3 2024 suggest that the city’s appeal to global investors is stronger than ever, buoyed by favorable policies, rapid infrastructure development, and its reputation as a safe haven for capital.

    Looking forward to Q4 2024 and beyond, analysts expect continued growth, albeit at a more measured pace, as global economic factors and rising interest rates come into play. However, Dubai’s real estate market remains resilient, underpinned by a growing population, new visa regulations, and a pipeline of high-profile projects that will keep the market dynamic for years to come.

    Read the full Q3 2024 Dubai Real Estate Market Report for detailed insights.

    16k