Dubai’s residential real estate market has reached a historic milestone, surpassing AED 50 billion in sales for the first time, according to data released on Thursday.

The latest Engel & Völkers Middle East report reveals a significant 80% year-on-year increase in transactions, totaling 19,605 sales. The off-plan market was the main driver, with sales soaring by 117%, while the secondary market also grew by 33%, despite limited supply.

“This remarkable performance showcases Dubai’s undeniable resilience and appeal as a premier global real estate market,” said Daniel Hadi, CEO of Engel & Völkers Middle East. Dubai continues to attract high-net-worth individuals and global businesses, drawn by its stability and growth potential.

Despite rising property values, averaging a 1.7% increase, Dubai remains attractive to investors due to its competitive average rental yield of 6.9%. The city’s resilience amid global geopolitical challenges underscores its status as a durable and appealing real estate hub.

Top Luxury Neighborhoods in Dubai

Engel & Völkers highlighted Dubai’s most sought-after upscale neighborhoods:

• Palm Jumeirah: Renowned for its luxury living, marinas, and beachfront villas averaging AED 37 million, it’s the top choice for high-end transactions.
• Dubai Marina: A vibrant district favored for its nightlife, dining, and waterfront homes, ideal for families and professionals.
• Downtown Dubai: The heart of urban luxury, featuring landmarks like Burj Khalifa and Dubai Mall, attracts those seeking the pinnacle of city living.
• Dubai Hills Estate: A suburban paradise blending luxury with green spaces, popular among families and professionals.
• Emirates Living: Known for its serene lakes, lush greenery, and proximity to top schools, it offers a tranquil suburban lifestyle.

Commercial Real Estate Growth

Dubai’s commercial real estate market also showed strong performance. Total sales reached AED 10.9 billion, a 10% increase from 2023, marking the highest monthly total in 2024. The office sector saw notable growth, with sales rising 24% year-over-year, and average prices jumping 37% to AED 1,503 per square foot.

Office rentals surged by 25.8%, and retail rents rose by 6.9% compared to 2023. This growth reflects Dubai’s continued economic expansion and the influx of businesses relocating or scaling operations in the city.

With robust demand in both residential and commercial sectors, Engel & Völkers projects a strong finish for 2024 and a bright outlook for 2025.

Source: Propertynews