In this episode of Dubai Real Estate Unplugged, Luke was joined by property experts Jake Walton, Thomas Poulson, and Mokhtar El Kouche to recap Dubai’s 2024 market reports.
They analysed market trends in over 30 communities, looking at shifts in buyer preferences and the long-term impact of Dubai Land Department initiatives. They also examined investor and buyer behaviour, identified emerging investment opportunities, and assessed the challenges influencing the property market.
In 2024, Dubai's real estate market hit a record high with 432 billion AED in total sales transactions across 695,000 transactions—an impressive 35% increase from the previous year. With an influx of innovative off-plan developments and a sustained demand for quality living spaces, the market remains robust and full of opportunities.
Dubai is a place to live, not just invest
A notable shift in buyer mindsets is that people, particularly families, are now viewing Dubai as a long-term home rather than a short-term investment. This shift is reflected in the booming property market, with a 6% increase in the average price per sq. ft and a 9% rise in transactions.
The appeal of Dubai lies in its tax-free status, higher safety standards, and the ease of transition for families. The emirate's business-friendly policies and high quality of life continue to attract high-net-worth individuals, contributing to the ongoing migration of millionaires.
Compared to cities like London, Paris, New York, and Tokyo, Dubai’s property prices remain highly attractive, even in 2025. For investors, buying a property investment now could still yield a 4-7% return due to increasing demand for residential property.
Off-Plan dominating the 2024 market
In 2024, off-plan sales made up over 60% of transactions, with a notable 66% increase in transaction volume and a 53% rise in value compared to the previous year.
Economic downturns in other major cities are driving international investors to Dubai, creating a diverse mix of buyers in the market. Only 26,000 units were delivered in 2024, highlighting the growing demand driven by a significant population influx and an apparent housing shortage, which is pushing prices up.
Areas such as Downtown Dubai, Business Bay, Meydan, Dubai Creek Harbour, Palm Jebel Ali, Dubai Islands, and Dubai Maritime City are gaining increasing popularity for a variety of reasons.
With a large influx of new developments, only about 10% of off-plan projects are considered to provide good value for money, making thorough market analysis and due diligence essential for investors to navigate the dynamic property landscape effectively.
2024’s rental market challenges for tenants
Tenants, unlike buyers, faced difficulties with rental prices increasing by approximately 17% despite a stable number of new rental contracts compared to the previous year. This was due to landlords adjusting rents in line with the rental calculator, which was updated in March-April 2024.
Buyer and tenant behaviour is shifting, with increasing demand for larger homes, such as villas and townhouses, driven by family migration.
Visionary projects like the Dubai 2040 Master Plan and the D33 Economic Agenda are shaping the city’s future, with new urban centres emerging and businesses flocking to Expo City and beyond, rapidly transforming Dubai’s economic and residential landscape.
Closing thoughts
Despite some challenges for tenants, the market is expected to continue its steady growth, particularly as new infrastructure projects like the Dubai Metro expand and more areas become accessible.
Developers are working hard to keep up with demand, and rents are expected to rise further in 2025.
To find out more: Download our 2024 Market Reports
