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:
1. 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.
2. 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.
According to Bayut’s latest Q1 2025 statistical data analysis, Dubai’s real estate sector continues to record some of the highest return on investment (ROI) rates globally. For investors, affordable apartments in areas such as International City, Dubai Investments Park (DIP) and Discovery Gardens have delivered strong rental yields of between 9 and 11 percent. Mid-range communities, including Living Legends, Al Furjan and Town Square have recorded returns of between 8 and 11 percent. Meanwhile, luxury apartments in Al Sufouh, Green Community and DAMAC Hills have offered rental yields exceeding 7.88 percent.
For villas, DAMAC Hills 2, Serena and International City have led the affordable segment with ROIs of above 5.71 percent. Mid-tier villa communities such as Jumeirah Village Circle, Motor City and Mudon have reported returns of between 5 and 8 percent. Meanwhile, the high-end villa communities of Al Barari, Dubai Creek Harbour and Mohammed Bin Rashid City have achieved ROIs surpassing 5.82 percent.
3. 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.
The latest ValuStrat Price Index indicates that residential capital values in April 2025 reached 214.1 points, reflecting a 1.6 percent monthly increase and a remarkable 25.3 percent rise year on year. ValuStrat’s analysis reveals that villa values surged to 280.5 points, marking a 2 percent monthly increase and a substantial 29.8 percent annual growth.
High-performing areas, such as Jumeirah Islands and Palm Jumeirah, recorded impressive annual gains of 41.7 percent and 41.3 percent, respectively. This trend highlights the enduring appeal of villas in Dubai’s premium neighborhoods, which are now valued 63 percent above their 2014 peaks and 170 percent higher than post-pandemic levels.
4. 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.
5. 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.
6. 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.
2024 market performance
Dubai’s real estate market achieved record-high numbers in 2024, setting new milestones with a total of 180,900 transactions valued at AED522.1 billion. The marks a significant increase of 36 percent and 27 percent compared to the previous peak of 133,100 sales worth AED411.1 billion in 2023.
In the primary market, initial sales from developers surged by 30 percent year-on-year, reaching AED334.1 billion, underscoring the strong appetite for new developments and off-plan properties. The transaction volume also skyrocketed by 51 percent to 119,800 in 2024, demonstrating a notable rise in buyer confidence and developer engagement. Additionally, the average price per square foot saw a steady increase of 10 percent, now standing at AED1,600.
This demand was driven by the launch of new projects and attractive payment plans, drawing in foreign investors who were further encouraged by residency incentives and visa reforms.
The secondary market also experienced robust activity, with a 21 percent increase in re-sales totaling AED188.1 billion. The transaction volume rose by 14 percent to 61,100, reflecting sustained market momentum. Moreover, the average price per square foot in this segment grew by 12 percent year-on-year to AED1,300.
This exceptional year, which set numerous monthly and quarterly records, showcased annual growth across all property sectors. Notably, apartment sales led the charge with a 42 percent year-on-year increase, totaling 141,168 transactions and AED260.6 billion.
Villa sales rose by 21.1 percent from 2023, reaching 30,938 units valued at AED164.1 billion. Meanwhile, commercial property transactions increased by 10.1 percent in volume to 4,304 units, amounting to AED9.7 billion, and 4,352 plots sold for AED86.5 billion, marking a rise of 2.6 percent.
Read: Dubai launches real estate tokenization platform, first in the MENA region
Q1 2025 highlights
In the first quarter of 2025, Dubai’s residential real estate market exhibited strong resilience, with transaction volumes surging 23 percent year-on-year to reach 42,274 sales across both secondary and off-plan markets, according to a report from Espace Real Estate.
The quarter witnessed robust activity despite early indications of market stabilization, with transaction volumes declining 10 percent quarter-on-quarter amid broader global economic uncertainty.
Off-plan transactions comprised 59 percent of all residential deals, maintaining a trend observed throughout 2024. This shift in investor sentiment reflects a move away from speculative buying towards a more measured approach that could support long-term market health.
In April 2025, Dubai’s real estate sector recorded AED62.1 billion in total sales transactions last month, the highest ever monthly total for the emirate. This marked a 94 percent year-on-year surge in value compared to April 2024, and a 54 percent rise in transaction volume, according to Dubai Land Department (DLD) data. This record-breaking performance underscores the city’s thriving real estate sector, with growth witnessed across both primary and secondary markets.
Why Dubai’s real estate market stands apart
Dubai’s real estate market has proven itself not only as a regional powerhouse but also as a global benchmark for sustained growth, resilience and investor appeal. With record-breaking transactions, rising property values and unmatched rental yields, the city offers a rare combination of affordability, profitability and long-term stability.
Strategic government initiatives, such as the Dubai Real Estate Sector Strategy 2033, have laid a solid foundation for future growth by aligning the market with broader economic objectives. Coupled with investor-friendly policies, world-class infrastructure and lifestyle appeal, Dubai is well-positioned to attract continued international investment.
Whether you’re looking for high returns, capital appreciation or a foothold in one of the world’s fastest-growing hubs, Dubai offers an investment environment built for the future. As the emirate continues to shatter records and evolve with global trends, it’s clear that Dubai’s real estate sector is more than just booming—it’s thriving with purpose.
