Dubai’s real estate market is experiencing unprecedented international interest, with combined residential and commercial sales for the quarter reaching AED138.8 billion ($37.79 billion). This growth reflects the city’s dynamic economic climate and the increasing attractiveness of its property market to global investors.
Strong Performance in Commercial and Residential Sales
In the commercial sector, sales reached AED23.2 billion, marking a significant 28% rise in transaction value. Meanwhile, residential sales surged by 40.8% compared to the previous year, totalling AED115.6 billion. This impressive growth can be attributed to several factors, including robust economic fundamentals, a surge in foreign investment, and Dubai’s continued allure as a destination for affluent individuals and corporations alike. The UAE’s economy is on a projected growth trajectory, with expected increases of 3.9% in 2024 and 6.2% in 2025, driven primarily by the booming real estate, tourism, and international trade sectors.
Dubai’s real estate market is not just resilient; it is thriving with significant momentum across both residential and commercial fields. The city’s commitment to strategic development, its welcoming business environment, and its world-class infrastructure continue to make it a magnet for global investment. As demand for high-end properties peaks, the government’s focus on economic diversification supports further growth across vital sectors, suggesting a sustained upward trend for real estate in all facets.
Off-Plan Property Sales on the Rise
The strong interest in off-plan properties is a notable trend, as residential transaction volumes increased by 40.8% year over year, reaching AED115.6 billion in Q3. Off-plan projects comprised more than 65% of these transactions, fuelled by new developments and increased investor enthusiasm. Over 30,000 off-plan units were sold in the quarter, reflecting a 62.5% increase from the previous year. Key areas, including Dubai Creek Harbour and Sobha Hartland II, are attracting buyers, while established communities such as Jumeirah Village Circle, Dubai Hills Estate, and Business Bay continue to lead the charge.
Sustained Demand in the Secondary Market
The secondary market also displayed robust activity, with transaction volumes up 12.8%, signalling sustained demand for ready-to-move-in properties. Even as prices have risen by over 15% in several districts, sales of villas and townhouses have thrived in locales like Emirates Living, Al Furjan, and Mohammed Bin Rashid City. Similarly, apartment sales have remained strong in vibrant areas such as Jumeirah Village Circle, Dubai Marina, and Business Bay.
Dubai’s luxury real estate market is poised for a landmark year, despite a minor 6% dip in transactions over AED10 million. Prestigious areas like The Palm Jumeirah recorded 110 transactions, three exceeding AED200 million, including the sale of a penthouse for AED275 million. This underscores the continuous demand for ultra-luxury properties. Other high-end communities such as Mohammed Bin Rashid City and Dubai Hills Estate continue to captivate affluent buyers, while emerging areas like The Oasis and Palm Jebel Ali are gaining traction.
Growth in the Commercial Real Estate Sector
In the commercial realm, Q3 saw extraordinary growth with sales totalling AED23.2 billion and a 28% year-over-year transaction value increase. Demand for premium commercial properties remains strong, evidenced by a 12.6% rise in office sales and a 16.8% increase in retail transactions. Prime locations such as Business Bay and Jumeirah Lakes Towers (JLT) are particularly favoured for office space, reinforcing Dubai’s status as a global business hub. Rising asset prices have pushed transaction values higher, even as overall sales volumes experienced a slight 6.5% decrease. The industrial sector mirrors this trend, with rising rent patterns in the leasing market, including a 4% increase in office and retail rents and a notable 19% increase in warehouse rents.
Leasing Market Thrives Amid Population Growth
The leasing market in Dubai continues to thrive, bolstered by a growing population. Rental activity is especially concentrated in popular districts like Dubai Marina, Jumeirah Village Circle, and Dubai Silicon Oasis. Despite rising rental prices, demand persists as tenants increasingly opt to either renew leases or purchase properties, with average rents climbing by double digits in several areas.
Looking ahead, Dubai’s real estate market is well-positioned for continued expansion. The UAE economy, forecast to grow by 3.9% in 2024 and 6.2% in 2025, provides a solid foundation. The government’s initiatives to diversify the economy, particularly focusing on booming sectors such as technology, healthcare, and green energy, are expected to further drive demand in both residential and commercial markets, paving the way for a prosperous future.
