Dubai real estate market sets all-time record throughout 2024

Dubai’s real estate market has had a record-breaking year, with new milestones being set throughout 2024, culminated in an all-time peak of 180,900 transactions worth Dhs 522.1 billion.

A market report issued on Thursday by fäm Properties underlines how 2024 became an historic year, with big leaps of 36 per cent and 27 per cent respectively on the previous high of 133,100 sales worth Dhs411.1 billion in 2023.

In the primary market, first sales from developers climbed by 30 per cent year-on-year to Dhs334.1 billion, highlighting strong demand for new developments and off-plan properties.

The transaction volume surged by 51 per cent to 119,800 in 2024, reflecting a substantial increase in buyer confidence and developer activity. There was also a steady appreciation in the average price per sq ft, which was up 10 per cent to Dhs 1,600.

Demand was fuelled by new project launches and favourable payment plans, as the segment attracted foreign investors, supported by residency incentives and visa reforms.

Healthy demand in the secondary market was highlighted by a 21 per cent increase in re-sales to Dhs 188.1 billion. Transaction volume was also up by 14 per cent to 61,100, demonstrating sustained activity. The average price per sq ft increased by 12 per cent year-on-year to Dhs 1,300.

The 2024 re-sale figures reflected buyers shifting to ready properties for immediate occupancy, and high rental yields attracting investors, while infrastructure improvements enhanced property desirability.

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.” A year which had earlier set numerous monthly and quarterly records brought annual growth across each of property sectors, headed by a 42 per cent year-on-year increase in the volume of apartment sales, with 141,168 transactions totalling Dhs 260.6 billion.

Villa sales were up by 21.1 per cent from 2023 to 30,938 units worth Dhs 164.1 billion, commercial property transactions increased by 10.1 per cent in volume to 4,304 units at Dhs 9.7 billion, while 4,352 plots sold for Dhs 86.5 billion, a rise of 2.6 per cent.

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

Business Bay led the way in overall sales value, with 6,888 transactions worth Dhs 21.1 billion. Meanwhile, emerging areas like Madinat Al Mataar and Wadi Al Safa 5 gained traction, indicating growing demand for suburban living and integrated communities.

Meanwhile, Dubai Land Department launched the Smart Rental Index 2025, marking a transformative milestone in regulating and developing Dubai’s real estate sector.

This index represents a comprehensive system that integrates the latest technologies and real estate expertise, aiming to provide exceptional services that meet the needs of all stakeholders in the real estate market.

It further enhances transparency and fairness in determining rental values, aligning with Dubai’s Digital Strategy and the Dubai Real Estate Sector Strategy 2033 objectives.

This was announced during a press conference held at the department’s headquarters, which was attended by several strategic partners, along with a group of representatives from government entities and real estate companies in Dubai, as well as DLD’s CEOs and Directors.

The index relies on an advanced building classification system that considers all technical and service-related aspects of properties. Each building is evaluated based on a comprehensive set of criteria, including technical and structural characteristics, the quality of finishes and maintenance, the building’s strategic location and its spatial value, as well as the level of services and facilities available, such as maintenance, cleanliness, and parking management. This mechanism aims to ensure accurate and fair determination of rental values, reflecting each property’s true quality and advantages.

During the conference, Majid Al Marri, CEO of the Real Estate Registration Sector at Dubai Land Department, emphasised that the launch of the ‘Smart Rental Index’ marks a pivotal transformation in the regulation and development of the real estate sector in Dubai.

He highlighted that this initiative enhances transparency, builds trust, and provides stakeholders with a balanced and sustainable environment.

He stated “This index relies on artificial intelligence technologies and a building classification system and provides fair and accurate rental valuations, strengthening Dubai’s position as a global investment destination.” He added, “In 2024, the total number of registered rental contracts exceeded 900,000, reflecting an 8 per cent growth compared to the previous year. This increase reflects the growing confidence in the Dubai real estate market, enabling all parties in rental agreements to make well-informed, ultimately achieving the aspirations of all parties and enhancing the long-term sustainability of the market.”

WAM