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In 2024, real estate investments in Dubai led to impressive market growth. Over the year, the total number of transactions reached 181,000, with a combined value of AED 522.5 billion ($142.2 billion), representing increases of 36% and 27%, respectively, compared to the previous year. This continues a long-term trend observed since 2021.
Several factors drive real estate price trends in 2024. These include a stable and diversified economy, active government support for the sector, such as tax incentives and long-term residency programs tied to real estate and business investments, as well as Dubai’s appeal as a tourist destination and a global financial and business hub. This has attracted more expatriates and visitors, further boosting demand for real estate.
Experts in housing market analysis believe property prices will continue to rise in 2025, with an average increase of 8% predicted. Rental rates are also expected to climb, with short-term rentals projected to rise by 18% and long-term rentals by 13%.
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The Dubai real estate market in 2024
There are positive real estate changes in 2024. Significant growth in the number and value of transactions was recorded across all quarters, reflecting stable housing price dynamics. The city continues to attract international investors interested in capital appreciation and rental income.
Demand
In 2024, the market of property in Dubai saw a substantial increase in demand, as evidenced by key metrics such as transaction numbers and total transaction values:
- Q1: The number of transactions rose by 4.7% quarter-on-quarter and by 19.2% year-on-year. The total transaction value decreased by 10.6% quarter-on-quarter but increased by 23.1% year-on-year.
- Q2: Transactions grew by 17.1% quarter-on-quarter and 44.2% year-on-year, with total transaction value increasing by 13% quarter-on-quarter and 37.1% year-on-year.
- Q3: Transactions rose by 16.2% quarter-on-quarter and 37.8% year-on-year, with total transaction value increasing by 14.5% quarter-on-quarter and 30% year-on-year.
| Period | Number of Transactions | Total Transaction Value |
|---|---|---|
| Q1 | 37,029 | AED 109.6 billion ($29.8 billion) |
| Q2 | 43,378 | AED 123.9 billion ($33.7 billion) |
| Q3 | 50,403 | AED 141.8 billion ($38.6 billion) |
Monthly data for Q4:
- October 2024: Transactions increased by 68.4% year-on-year, totaling 20,447, while the value of transactions rose by 54.4%, reaching AED 61.1 billion ($14.6 billion).
- November 2024: A total of 14,484 deals were concluded, valued at AED 43.1 billion ($11.7 billion), representing a year-on-year increase of 18.5% in transaction numbers and 1.8% in value.
- December 2024: Transactions reached 15,130, growing by 37.3% year-on-year, with a total value of AED 42.7 billion ($11.6 billion), up by 5.1%.
Prices
Real estate prices in Dubai in 2024 showed the following trends:
- Q1: Average prices per square meter rose by 4.3% quarter-on-quarter and 16.7% year-on-year. Sales of apartments in Dubai increased by 26.6% compared to Q1 2023, while villa sales fell by 5.4%. Total transactions in the apartment segment reached AED 56.3 billion ($15.3 billion), while villa transactions amounted to AED 31.6 billion ($8.6 billion).
- Q2: Prices increased by 1.1% quarter-on-quarter and 13.1% year-on-year. Apartment sales rose by 47% compared to Q2 2023, and villa sales grew by 40.5%. Apartment transactions totaled AED 62.9 billion ($17.1 billion), while villa transactions reached AED 39.7 billion ($10.8 billion).
- Q3: Prices fell slightly by 0.2% quarter-on-quarter but rose by 7.5% year-on-year. Apartment sales grew by 43.7% compared to Q3 2023, while villa sales increased by 24.8%. Apartment transactions totaled AED 71.4 billion ($19.4 billion), and villa transactions amounted to AED 47.5 billion ($12.9 billion).
| Period | Average Price Per Square Meter |
|---|---|
| Q1 | AED 16,114 ($4,387) |
| Q2 | AED 16,297 ($4,437) |
| Q3 | AED 16,264 ($4,428) |
In October 2024, the average price per square meter rose to AED 17,061 ($4,645), a 7.1% increase year-on-year. In November, it was AED 16,264 ($4,428), up 9.8%, and in December, AED 16,846 ($4,586), up 8.6%. These months recorded year-on-year growth in apartment transactions of 66.9%, 39.3%, and 40%, respectively. Villa sales volumes in October grew by 107.6% year-on-year, declined by 25.7% in November, and rose by 23.5% in December.
- In October, the total transaction value for apartments reached AED 28 billion ($7.6 billion), while villas accounted for AED 21.5 billion ($5.85 billion).
- In November, the total value of apartment sales was AED 21.1 billion ($5.7 billion), with villas at AED 12.1 billion ($3.3 billion).
- In December, apartment transactions totaled AED 20.9 billion ($5.7 billion), while villas were AED 11.4 billion ($3.1 billion).
By the end of the year, overall prices rose by 12%, reaching AED 16,404 ($4,466) per square meter.
| Property Type | Average Price | Price Change (%) | Price Per Square Meter | Price Per Square Meter Change (%) |
|---|---|---|---|---|
| Apartments (new) | AED 1.3 million ($354,000) | 2.6% | AED 21,528 ($5,860) | 5.2% |
| Apartments (resale) | AED 1.2 million ($326,500) | -2.1% | AED 10,764 ($2,930) | 3.6% |
| Villas (new) | AED 3.3 million ($898,500) | 15.5% | AED 10,764 ($2,930) | 18.3% |
| Villas (resale) | AED 3.3 million ($898,500) | 11.9% | AED 10,764 ($2,930) | 22.5% |
| Commercial properties (new) | AED 1.7 million ($463,000) | 43.2% | AED 21,528 ($5,860) | 14.3% |
| Commercial properties (resale) | AED 1.3 million ($354,000) | 29% | AED 10,764 ($2,930) | 25.6% |
Rental trends
In Q4 2024, the average gross rental yield for apartments and houses in the UAE stood at 4.87% annually, while Dubai achieved a higher average of 6.4%.
In Dubai, rental yields varied by property type:
- Studios: 7.58%
- 1-bedroom apartments: 6.96%
- 2-bedroom apartments: 6.89%
- 3-bedroom apartments: 6.63%
Rental rates by area and apartment type:
Downtown Dubai
- Studio: $2,586/month (7.92% yield)
- 1-bedroom: $3,403/month (6.25% yield)
- 2-bedroom: $6,012/month (6.19% yield)
- 3-bedroom: $9,075/month (5.88% yield)
- 4-bedroom: $24,687/month (4.11% yield)
Palm Jumeirah
- Studio: $2,563/month (7.63% yield)
- 1-bedroom: $3,856/month (4.64% yield)
- 2-bedroom: $5,898/month (4.41% yield)
- 3-bedroom: $7,487/month (2.82% yield)
- 4-bedroom: $34,032/month (2.87% yield)
Dubai Marina
- Studio: $1,928/month (6.5% yield)
- 1-bedroom: $2,722/month (6.57% yield)
- 2-bedroom: $3,856/month (5.9% yield)
- 3-bedroom: $6,112/month (5.76% yield)
- 4-bedroom: $9,075/month (3.92% yield)
Business Bay
- Studio: $1,742/month (6.68% yield)
- 1-bedroom: $2,495/month (6.23% yield)
- 2-bedroom: $3,471/month (5.67% yield)
- 3-bedroom: $5,218/month (5.08% yield)
Jumeirah Lakes Towers (JLT)
- Studio: $1,474/month (7.22% yield)
- 1-bedroom: $2,155/month (5.86% yield)
- 2-bedroom: $3,176/month (5.54% yield)
- 3-bedroom: $4,197/month (5.11% yield)
Jumeirah Village Circle (JVC)
- Studio: $1,247/month (7.87% yield)
- 1-bedroom: $1,735/month (7.04% yield)
- 2-bedroom: $2,586/month (6.78% yield)
- 3-bedroom: $3,516/month (7.21% yield)
Arjan
- Studio: $1,157/month (7.58% yield)
- 1-bedroom: $1,701/month (6.53% yield)
- 2-bedroom: $2,495/month (6.39% yield)
Al Furjan
- Studio: $1,134/month (8.51% yield)
- 1-bedroom: $1,814/month (6.89% yield)
- 2-bedroom: $2,722/month (7.06% yield)
Dubai property costs in 2025
Analysts have made the following market forecast for 2025:
- Growth in the rental segment. Rental prices are expected to continue rising, with short-term rentals projected to increase by 18% and long-term rentals by 13%. This is driven by a steady influx of international professionals and growing demand overall.
- Rising demand for luxury properties. Developers are set to deliver an additional 19,700 luxury properties in 2025 to meet surging demand. These properties attract international investors thanks to their modern amenities and unique designs. Dubai already houses 140 branded complexes out of 740 worldwide, reflecting the popularity of such projects.
- Demand for sustainable developments. The use of sustainable technologies and eco-friendly materials is becoming a key driver in residential and commercial real estate. With investors becoming increasingly eco-conscious, demand for green properties is expected to grow. Eco-friendly developments could account for up to 35% of total transactions in 2025, a significant increase from the 15% share recorded five years ago.
- Price growth. Real estate prices are expected to rise by 8% in 2025 compared to housing costs in the UAE in 2024. The government’s and developers’ focus on innovation and sustainability ensures Dubai’s continued leadership in the global market. Investors can anticipate ongoing capital appreciation in the coming years.
Recommendations for buyers and investors
Given current trends and housing forecasts, potential buyers and investors are advised to:
- Focus on new developments: In 2024, the primary market accounted for 66% of all transactions. In 2025, the number of offerings in both affordable and luxury segments is expected to increase. Prices for apartments in new complexes are growing more steadily—5.2% compared to 3.6%. Villa prices are also rising significantly in both primary and secondary markets, at rates of 18.3% and 22.5%, respectively.
- Diversify your portfolio: With a wide variety of offerings, it is recommended to invest in different property types, including commercial real estate, which showed a notable increase of 25.6% in price per square meter in 2024.
- Assess risks carefully: Before investing, consider factors such as macroeconomic conditions and supply levels in the chosen area. To minimize risks, work with trusted developers, agencies, and legal advisors.
