Dubai's real estate sector continues to experience remarkable growth, with off-plan transactions now representing 63% of total property sales in 2024—an increase from 54% in 2023, according to a recent report by Engel & Völkers Middle East.
This increase in off-plan sales highlights a rising demand for new developments, driven by competitive pricing, flexible payment plans, and limited availability in the secondary market.
Residential Sales Witness Significant Growth
The report also notes a substantial 40.3% year-on-year rise in overall residential sales, reaching 170,992 transactions in 2024—more than five times the volume recorded in 2020. This surge reflects growing investor confidence, particularly in the apartment segment.
Apartment sales have seen a 47.6% increase compared to the previous year, accounting for nearly 90% of the market’s expansion. Their affordability, attractive rental returns, and broad appeal to both end-users and investors contribute to this strong demand.
High Demand for Luxury Real Estate
Dubai's luxury real estate market remains a top choice for high-net-worth individuals, with prime locations such as Palm Jumeirah, Downtown Dubai, and Dubai Marina continuing to attract affluent buyers. Additionally, new developments like Palm Jebel Ali and The Oasis are generating strong interest among those seeking exclusivity and long-term capital growth.
The ultra-luxury segment, consisting of properties priced above AED 10 million, has also experienced a 20.5% increase in sales, reinforcing Dubai’s position as a premier global destination for luxury real estate.
Daniel Hadi, CEO of Engel & Völkers Middle East, stated: “The dominance of off-plan sales reflects a shift in buyer preferences, with investors prioritizing properties that offer long-term value and flexible financing. Developers are introducing innovative projects, while government-led initiatives such as long-term residency visas and free zone expansions continue to enhance Dubai’s appeal as a real estate investment hub.”
Commercial Real Estate Thrives Amid Business Growth
Dubai’s commercial real estate sector is also flourishing, supported by strong economic performance and an influx of new businesses. Over 24,000 new business registrations were recorded in the first half of 2024, contributing to high occupancy levels in key business districts such as DIFC, Downtown Dubai, and Business Bay, where rates have reached between 95% and 97%.
This demand has fueled double-digit rental growth across the commercial sector. Office rents have risen by 11% year-on-year, retail rents by 9.7%, and warehouse prices by 21.1%, underscoring the increasing need for premium commercial spaces.
The scarcity of Grade A office space has led to new development projects, including Aldar Properties’ upcoming commercial tower on Sheikh Zayed Road, with further commercial launches planned throughout the year.
Positive Outlook for 2025
Dubai’s real estate market is expected to remain a key economic driver in 2025, supported by increasing property values, continued growth in the luxury sector, and the sustained momentum of off-plan transactions.
Developers are actively responding to strong demand with new project launches, while government policies—including long-term visas and investment-friendly regulations—continue to strengthen Dubai’s position as a thriving real estate market.
Source: Gulf Business
