Dubai’s real estate market has maintained its position as the first choice for buyers in 2024, with villas leading the way in terms of demand and value and villas in Dubai providing luxury, space and modern amenities, which are highly demanded by international residents and investors.
According to The Dubai Viblas website, in 2024, Dubai witnessed nearly 20071 villa transactions, generating about 16.1 billion euros in sales. These figures highlight a strong market driven by growing demand for luxury, high-quality properties in key locations across the city.
Villas in Dubai saw a 32.4% increase in capital values year-on-year, reflecting their strong appeal and investment potential. This price growth points to opportunities for investors seeking long-term gains, as well as home buyers who prioritize value estimation.
Developers Race
Developers are racing to meet the growing demand by introducing new villa projects. By the end of 2024, about 9,000 villas will be completed, and an additional 19,700 units are expected to be completed in 2025.
However, with Dubai’s population expected to reach 5.8 million by 2040, and the flow of wealthy and investors continues, demand is likely to continue to exceed supply.
The luxury villas sector boomed, with real estate sales valued at more than 5 million euros rising by 46% in the third quarter of 2024 compared to 2023. Major areas such as Palm Jumeirah, Emirates Hills and Dubai Hills Estate remain famous for their exclusive lifestyle offerings, including private beaches, golf courses and world-class amenities.
Rental returns
Villas in Dubai enjoy great rental returns ranging from 6% to 10%, far exceeding international averages. Compared to cities such as London and New York, where returns range from 2% to 4%, Dubai offers a more profitable rental market for real estate investors. Dubai’s villa market is witnessing unprecedented demand, with high property values and increasing interest from local and international investors.
Profitable opportunities
Approaching 2025, the city’s strategic location, luxurious lifestyle and tax-friendly environment continue to attract high-net worth individuals and families. With strong rental returns and significant capital gain potential, investing in villas in Dubai remains a lucrative opportunity for those seeking long-term value in the real estate sector.
Despite the rise in prices, Dubai remains competitive compared to major cities. A budget of 910,000 euros includes about 91 square meters of real estate in Dubai, while the same amount buys only 33 square meters in London or 34 square meters in New York.