Dubai’s real estate transactions are set to grow 30 percent year-on-year by the end of 2024 as the sector continues to break records for sales, prices, mortgages, and launches, according to the latest analysis from Property Monitor. Annual sales transaction volumes have now surpassed 151,000 and have eclipsed 2023 year-end sales by 13.4 percent.
This phenomenal growth and overall trajectory of market activity will provide a solid footing for achieving the ambitious objectives of the Dubai Real Estate Sector Strategy 2033, which calls for real estate transactions to grow by 70 percent, raising the overall market value to AED1 trillion.
Why you should invest in Dubai real estate
In addition to the sector’s promising prospects, here are a few reasons you should invest in Dubai real estate:
Lower sale prices
With an average sale price of just $438 per square foot, Dubai’s real estate sector presents incredible value compared to London and New York. Despite its reputation for luxury and world-class amenities, Dubai’s property market remains accessible to a broader spectrum of buyers. Investors can enter a market that offers lavish lifestyles and state-of-the-art developments at a fraction of the cost of global counterparts.
Higher investment yields
However, the key reason investors should invest in Dubai real estate is the much higher investment yields. Dubai offers gross investment yields of 7 percent, the highest among the three cities. This is nearly double New York’s yield of 4.2 percent and almost triple London’s modest 2.4 percent. For investors seeking both consistent rental income and capital appreciation, Dubai’s real estate market provides an unparalleled opportunity.
Property price growth
Year-on-year inflation-adjusted property price growth in Dubai has surged by 16.5 percent, reflecting a strong and dynamic market fueled by high demand and constrained supply in premium locations. In stark contrast, New York grew 8.1 percent, while London lagged at just 1.6 percent.
Business-friendly ecosystem
Dubai’s appeal extends beyond affordability and yields. The city’s government has created a pro-investor ecosystem through initiatives such as visa reforms, zero property taxes, and its ambitious Dubai Economic Agenda D33. These measures have drawn global attention and bolstered the city’s reputation as a hub for businesses, expatriates, and high-net-worth individuals.
The city also recently launched the Dubai Real Estate Sector Strategy 2033 which presents a targeted plan designed to enhance the sector’s economic influence within the emirate. This involves a significant increase in transaction volumes and reinforces Dubai’s status as a leading destination for international investors.
Reflecting its robust strength and resilience, Dubai’s real estate market achieved over 163,000 transactions, totaling more than AED544 billion in the first nine months of 2024. Real estate investments also experienced considerable growth, surpassing AED376 billion during this timeframe, propelled by advanced infrastructure and a solid regulatory framework.
The Dubai Real Estate Sector Strategy 2033 aims to achieve its ambitious goals through a set of key performance indicators. These include doubling the real estate sector’s contribution to Dubai’s GDP to approximately AED73 billion, increasing homeownership rates to 33 percent, boosting real estate transactions by 70 percent, elevating the market value to AED1 trillion, and expanding the value of Dubai’s real estate portfolios twentyfold to AED20 billion.
Lifestyle offerings
Dubai also stands out for its lifestyle offerings, blending safety, connectivity, and modern infrastructure. The city’s position as a global travel hub, coupled with its family-friendly environment and favorable climate, makes it a top choice for residents and investors alike. London and New York, while iconic, are weighed down by high costs of living, congestion, and challenging climates.
Proactive governance
One of Dubai’s standout features is its proactive governance. Amid global uncertainty, Dubai has maintained investor confidence through stability and forward-looking policies. Unlike London, which continues to navigate post-Brexit challenges, or New York, which faces affordability crises, Dubai’s real estate market remains future-proof. The city is seeing rising demand fueled by mega infrastructure projects, a growing expatriate population, and its diversification into new economic sectors.
Dubai’s real estate market is not just thriving today, it’s built for long-term growth. The city’s leadership, combined with increasing demand from international investors, ensures sustained momentum even as the global real estate market fluctuates.
Read: UAE real estate market set for growth in Q4 2024 as demand surges for prime assets
Exponential 2024 growth
The total number of real estate transactions in Dubai reached 188,000 as of November 2024, with a combined value of AED625 billion ($170.2 billion), representing a 38 percent increase in transaction volume and a 23 percent rise in value compared to 2023. Notably, property sales surpassed AED437 billion for the first time, marking a 33 percent growth compared to the same period last year.
Dubai in October also shattered records with a notable 13.4 percent increase in real estate sales transactions, soaring to an unprecedented 20,460 deals. Not only did this mark the highest October sales volume ever, but it set yet another all-time monthly record.
Residential transactions, encompassing apartments, townhouses, and villas, accounted for the majority of sales at 94.9 percent. The highest transacted commercial property types were office spaces, hotel apartments, and vacant land.
Dubai real estate prices grew by 1.73 percent in October and currently stand at AED1,473 per square foot, also setting a new record high that is 19.4 percent over the previous all-time high and market peak of September 2014.
Preliminary figures for October indicate the introduction of 48 new residential projects with over 15,000 off-plan units added to the market. This contributes to an already record-breaking total of approximately 99,000 units across over 343 projects this year. The growing number of active developers in the market has led to a much broader diversity in product offerings.
While 2023’s launches were largely in the luxury and ultra-luxury segments, 2024 has brought projects across a wider spectrum of price ranges. With over 250 additional projects in the planning phases, Property Monitor anticipates that new launches will maintain historically high levels throughout the remainder of 2024 and well into 2025.
