Dubai’s real estate market shattered expectations in 2024, with an impressive 20% overall increase in property prices. Initial forecasts had predicted a modest rise of 5-7%, making this surge a testament to the robust growth and dynamic nature of the market.
The transaction volume for off-plan real estate reached unprecedented heights, climbing by 51%, signalling a substantial boost in both buyer confidence and developer engagement. This activity set a new transaction record, totalling $142 billion, further underscoring the sector’s vitality.
In terms of pricing, the average price per square foot appreciated steadily by 10%, reaching AED 1,600 ($436). This trend was driven by new project launches and attractive payment plans, which drew in a significant number of foreign investors. The influx was supported by enticing residency incentives and progressive visa reforms, adding to the market’s allure.
Throughout the year, the market set numerous monthly and quarterly records, culminating in significant annual growth across various property sectors. At the forefront was a remarkable 42% year-on-year increase in apartment sale volumes. Villa sales experienced a 21.1% increase from 2023. Commercial property transactions also rose by 10.1%, while plot sales saw a 2.6% rise.
A recent report by Knight Frank suggests this upward trajectory is far from over. The persistent boom is expected to drive home prices up by another 8% in 2025, fuelled by a significant housing supply shortage. Despite predictions for 2024 hinting at a moderate 5-7% price increase, actual figures showed a remarkable 20% rise, setting a precedent for another strong year ahead.
Given these promising trends and the market’s strong performance last year, Dubai’s real estate sector is poised to continue exceeding expectations and achieving new milestones.
