With sales prices surpassing AED 522.5 billion ($142.2 billion), a 27 percent annual rise, Dubai’s real estate market saw remarkable growth in 2024. According to fäm Properties’ most recent report, the market had 181,000 sales transactions, representing a 36% yearly increase.

With some of the best returns on investment in the world, Dubai’s place as a global leader in real estate has been solidified by this outstanding success. DXB Interact reports that investors made AED100.5 billion ($27.36 billion) from the industry, underscoring Dubai’s allure as a center for real estate investment propelled by strong demand, cutting-edge advancements, and government-supported incentives.

The economy of Dubai is still growing at an astonishing rate. The city’s economy reached $31.6 billion in the second quarter of 2024, an annual growth of 3.3 percent. With consistent development in the majority of industries, the second-quarter growth in H1 2024 pushed the overall GDP to AED 231 billion, a 3.2 percent growth rate from the first half of 2023.

At a total value of AED 10.15 billion, the real estate industry grew by 2.6 percent in the second quarter of 2024, contributing 6.9 percent of growth and 8.7 percent of Dubai’s GDP. 

According to Bayut, the highest yields of 9 to 11 percent were found in reasonably priced apartments in neighborhoods including Liwan, Discovery Gardens, and Dubai Investments Park (DIP) last year.

ROI percentages above 8.7 percent have been reported for mid-tier communities such as Living Legends, Motor City, and Al Furjan. In the meantime, rental yields for upscale units in Al Sufouh, Green Community, and Al Barari have been reported to be between 7% and 9%.

With ROIs exceeding 6%, Dubai Industrial City, International City, and DAMAC Hills 2 have dominated the inexpensive villa market. Returns of 6 to 8 percent were provided by mid-tier villa complexes, such as Jumeirah Village Triangle, Al Furjan, and Jumeirah Village Circle. At the same time, luxury villa communities with ROIs above 6% were recorded, such as The Sustainable City, Al Barari, and Tilal Al Ghaf.

As a result of increased migration and economic activity, population growth rates continued to be positive, reaching a peak of 4.66 percent in 2024. Dubai added almost 470,000 citizens over the course of five years, highlighting the city’s ongoing appeal as a place to relocate.

The real estate sector is in a strong position to benefit from continued growth, as estimates place Dubai’s population at 7.8 million by 2040. The population of Dubai is predicted to exceed 4 million by 2025, which would probably lead to significant demand increase in all real estate markets.

Developers’ first sales in the primary market increased by 30% year over year to AED 334.1 billion in 2024, indicating a significant demand for off-plan properties and new constructions. In 2024, the volume of transactions increased by 51% to 119,800, indicating a significant rise in developer activity and investor confidence. The average price per square foot also steadily increased, rising by 10% to AED 1,600.

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

With 12,878 first developer sales, Al Barsha South 4 was the best-performing area in the primary market in terms of overall volume, indicating its appeal to both investors and end users.

Last year, Dubai’s secondary real estate market had robust demand, with resales rising 21% to AED 188.1 billion. Additionally, the volume of transactions increased by 14% to 61,100, indicating consistent activity. Additionally, the average cost per square foot rose by 12% annually to AED 1,300. 

The 2024 resale numbers showed that buyers were moving to properties that were ready for immediate occupancy, that strong rental returns were drawing in investors, and that infrastructure upgrades increased the appeal of real estate. Sales figures shattered previous records, and the market’s robust rental demand and luxury resiliency continue to draw in foreign investors, solidifying its position as a premier real estate destination, according to Firas Al Msaddi, CEO of fäm Properties.

Dubai Marina led in total value, with 4,924 transactions totaling AED15.2 billion, highlighting its position as a high-end, waterfront destination, while Business Bay continued to dominate resale transactions, registering 5,142 agreements over the course of the year.

Al Barsha South Fourth, Al Thanyah Fifth, Al Merkadh, Downtown Dubai, and Jabal Ali First were other well-liked neighborhoods in the resale market.

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