Dubai’s real estate market witnessed unprecedented growth during the second quarter of 2024, with the Dubai Land Department recording more than 40,000 property transactions worth a total of AED 104 billion, an increase of 49% compared to the same period last year, according to the latest report by Better Homes. This growth reflects the growing demand from end-users and investors alike.
Secondary market villa sales increased by 36% year-on-year and 23% quarter-on-quarter. Off-plan sales also saw a significant increase due to the launch of several new projects.
Real estate prices increased by 18% compared to the second quarter of 2023, surpassing their 2014 peak by 12%. The average price per square foot reached AED 1,380, an increase of 4% compared to the first quarter of 2024.
Indian, British, Russian, Pakistani and Chinese nationalities topped the list of nationalities investing the most in Dubai real estate, according to the report, which adds that the return of Chinese buyers to the list of the top 10 countries with a presence in the Dubai real estate market is due to the diversification of their global investments, Dubai’s alignment with China’s Belt and Road Initiative, and improved travel and residency policies, in addition to the desire of Chinese investors to seek stable and profitable opportunities abroad, making Dubai an attractive destination for real estate investments.
The average gross rental yield for apartments ranges between 5 and 7%, which is among the highest in the world. The most attractive areas for real estate investment include Dubai Marina, Downtown Dubai and Palm Jumeirah, where rental yields range between 6 and 8%.
The report indicated that more than 17,200 units were delivered in the first half of 2024, while an additional 30,600 units are expected to be delivered between Q3 and Q4 2024, raising the annual forecast for 2024 to more than 47,800 units, which is broadly in line with the expected delivery figures.
Dubai witnessed the launch of more than 200 new residential projects in 2024, adding about 50,000 units to the market on the map. Among the notable projects that were delivered were Damac’s “Aikon City 3” towers in Business Bay, Emaar’s “Grand” apartments in Downtown Dubai, and Emaar’s “Grand Bleu” tower in Dubai Creek.
Dubai approved an investment program worth 25 billion dirhams to attract 650 billion dirhams in investments by 2033. The new Blue Line Metro project also includes the addition of 32 new stations by 2030, enhancing the connectivity of new areas in the city.
The UAE’s GDP growth is expected to reach 4.2% by 2025, driven by growth in the non-oil sector, which now accounts for more than 70% of economic growth. Government initiatives such as liberalization of the visa regime and foreign ownership laws have contributed to sustainable economic growth.
The Better Homes report confirms that Dubai’s real estate market is witnessing sustainable growth driven by strong demand from end-users and investors, supportive government initiatives, and continued infrastructure expansion, enhancing Dubai’s appeal as a global investment and living destination.