Record-Breaking Market Performance

In 2024, the Dubai real estate market had a record-breaking 180,900 transactions valued at AED522.1 billion ($142.2 billion).

A market report issued by fäm Properties underlines how 2024 became a historic year, with big leaps of 36% and 27%, respectively, on the previous high of 133,100 sales worth AED411.1bn ($112bn) in 2023.

Primary Market Growth

In the primary market, first sales from developers climbed by 30% year on year to AED334.1bn ($91bn), highlighting strong demand for new developments and off-plan properties.

In 2024, the number of transactions increased by 51% to 119,800, indicating a significant rise in developer activity and buyer confidence.

There was also a steady appreciation in the average price per sq ft, up 10% to AED1,600 ($436).

New project launches and advantageous payment plans fueled demand as the market drew in overseas investors with the help of visa reform and residency incentives.

Secondary Market Performance

The healthy demand in the secondary market was highlighted by a 21% increase in re-sales to AED188.1bn ($51.2bn).

Transaction volume also increased by 14% to 61,100, demonstrating sustained activity. The average price per sq ft increased by 12% year-on-year to AED1,300 ($354).

High rental yields drew in investors, buyers moved to ready-to-occupy residences, and infrastructural upgrades raised the appeal of real estate, according to 2024 resale data.

Expert Analysis

Firas Al Msaddi, CEO of fäm Properties, said: “This was a remarkable year for Dubai real estate, with transaction volumes growing despite global economic uncertainties, indicating resilient demand and an expanding buyer base.

“Sales values broke historical records, and with strong rental demand and luxury resilience, the market continues to attract global investors, reinforcing its status as a top real estate destination.”

Sector-Specific Growth

A year that had earlier set numerous monthly and quarterly records brought annual growth across each of the property sectors, headed by a 42% year-on-year increase in the volume of apartment sales, with 141,168 transactions totaling AED260.6bn ($71bn).

Villa sales were up by 21.1% from 2023 to 30,938 units worth AED164.1bn ($44.7bn), commercial property transactions increased by 10.1% in volume to 4,304 units at AED9.7bn ($2.6bn), while 4,352 plots sold for AED86.5bn ($23.6bn), a rise of 2.6%.

Also Read: Dubai launches 2025 rental index, building ratings to impact rent increases

Top Performing Areas – Primary Market

In the primary market, Al Barsha South 4 was the top-performing area in terms of overall volume, with 12,878 first sales from developers, reflecting its popularity among investors and end-users.

Business Bay led the way in overall sales value, with 6,888 transactions worth AED21.1bn ($5.6bn). In the meantime, new neighborhoods like Wadi Al Safa 5 and Madinat Al Mataar gained popularity, suggesting a rising need for integrated communities and suburban life.

• Al Barsha South 4: 12,878 transactions worth AED13.5bn ($3.7bn)
• Business Bay: 6,888 transactions worth AED21.1bn ($5.7bn)      
• Wadi Al Safa 5: 6,602 transactions worth AED13.6bn ($3.7bn)
• Madinat Al Mataar: 6,254 transactions worth AED17bn ($4.6bn)
• Hadaeq Sheikh Mohammed Bin Rashid: 5,246 transactions worth AED13.4bn ($3.6bn)                                          
• Madinat Hind 4: 5,152 transactions worth AED8.4bn ($2.3bn)
• Madinat Dubai Almelaheyah: 4,818 transactions worth AED12.7bn ($3.5bn)
• Al Merkadh: 4,474 transactions worth AED6.2bn ($1.7bn)
• Jabal Ali 1: 4,335 transactions worth AED6.7bn ($1.8bn)
• Bukadra:  4,215 transactions worth AED9.9bn ($2.7bn)

Top Performing Areas – Secondary Market

Business Bay maintained its dominance in re-sale transactions, recording 5,142 deals during the year, while Dubai Marina led in overall value, with 4,924 transactions worth AED15.2bn ($4.1bn), emphasizing its status as a premium waterfront destination.

• Business Bay: 5,142 transactions worth AED9.8bn ($2.7bn)
• Dubai Marina: 4,924 transactions worth AED15.2bn ($4.1bn)
• Al Barsha South Fourth: 4,635 transactions worth AED7bn ($1.9bn)
• Al Thanyah Fifth: 3,305 transactions worth AED8.1bn ($2.2bn)
• Al Merkadh: 3,155 transactions worth AED8.3bn ($2.3bn)
• Downtown Dubai: 3,122 transactions worth AED12.7bn ($3.5bn)
• Jabal Ali First: 2,364 transactions worth AED5bn ($1.4bn)
• Al Warsan First: 2,126 transactions worth AED1.2bn ($327m)
• Wadi Al Safa 5: 2,125 transactions worth AED5.9bn ($1.6bn)
• Hadaeq Sheikh Mohammed Bin Rashid: 2,106 transactions worth AED9.8bn ($2.7bn)