Dubai’s property market soared to new heights in 2024, breaking records despite speculation of a potential slowdown. The market last year saw total sales rising 35 percent annually to AED423.15 billion and the number of transactions increasing by 9 percent to 695,608. The average price per sq.ft. also rose 6 percent year-on-year to AED1,702
2024 also marked a standout year for Dubai’s off-plan property market, consolidating its position as a key driver in Dubai’s overall real estate performance. Off-plan sales and resales grew a significant 53 percent annually to AED233.19 billion while transactions rose 66 percent to 106,688.
In addition, the average price per sq.ft. also rose 1 percent to AED1,838. This surge in activity reflects a robust demand for premium properties, strategic project launches, and continued foreign investment, underscoring Dubai’s off-plan market as a top choice for long-term investment.
Top-performing communities
In its latest Dubai property market report, haus & haus unveiled some of the top-performing communities in the city. Two communities stood out last year for their strong performance: Arabian Ranches 2 and Villanova.
Arabian Ranches 2 saw a 5.5 percent rental yield with a 22 percent increase in price per sq.ft. Meanwhile, Villanova saw a rental yield of 8.9 percent and a 22 percent increase in price per sq.ft.
“While much of the conversation around Dubai’s property market in 2024 has centered on whether a slowdown is imminent, the numbers tell a different story. By analyzing over 30 communities, our report highlights the key areas driving growth, providing fresh perspectives for anyone covering the market,” stated Luke Remington, managing director of haus & haus.
Emerging investment opportunities in 2025
As Dubai’s property market continues to evolve, certain communities show strong growth potential, making them key areas for investment in 2025. These emerging hotspots highlight the demand for well-located, family-friendly, and high-yielding properties.
Victory Heights, with a 5.3 percent rental yield and a 23 percent rise in price per sq.ft, has become increasingly attractive to investors looking for long-term growth.
Meanwhile, Jumeirah Village Triangle (JVT), with a 40 percent increase in price per sq.ft and a 3.3 percent rental yield, signals growing interest, positioning it as a strong contender for future investments.
“All indications are, from all the people I’m talking to, there’s going to be many people moving here. It’s not just people coming here to work, its people coming here to retire, people coming here to invest, selling up wherever they are in the world and bringing that money here to Dubai,” stated Steven Leckie, associate director of off-plan and investment.
ROI trends to propel growth
Last year, affordable apartments in areas such as Dubai Investments Park (DIP), Discovery Gardens and Liwan offered the highest yields of 9 percent to 11 percent, according to Bayut.
Mid-tier communities including Living Legends, Motor City and Al Furjan have recorded ROI percentages above 8.7 percent. Meanwhile, luxury apartments in Al Sufouh, Green Community and Al Barari have reported rental yields between 7 percent and 9 percent.
For villas, Dubai Industrial City, International City and DAMAC Hills 2 have led the affordable segment with ROIs above 6 percent. Mid-tier villa communities, including Jumeirah Village Circle, Al Furjan and Jumeirah Village Triangle, offered returns of 6 to 8 percent.
Meanwhile, luxury villa communities including The Sustainable City, Al Barari and Tilal Al Ghaf recorded ROIs exceeding 6 percent.
Read: Dubai expands freehold property ownership options in prime areas to attract investments
Market outlook
Dubai’s property market offers some of the highest returns on investment globally, making it the top choice among investors seeking to diversify their portfolios. Coupled with high economic growth and a stable political environment, Dubai’s investment yields will likely continue to attract investors, further supporting market growth.
The property market’s stellar performance has cemented Dubai’s position as a global leader in real estate, offering some of the highest returns on investment globally. According to DXB Interact, investors earned AED100.5 billion ($27.36 billion) from the sector, highlighting Dubai’s appeal as a property investment hub driven by robust demand, innovative developments and government-backed incentives.
Dubai’s economy also continues to record impressive growth. In the second quarter of 2024, the city’s economy grew 3.3 percent year-on-year to reach $31.6 billion. Second-quarter growth brought the total GDP in H1 2024 to AED231 billion, a 3.2 percent growth rate from the first half of 2023, reflecting steady growth across most sectors.
Population growth rates will also remain a positive factor, peaking in 2024 with a 4.66 percent increase, reflecting higher migration and economic activity. Over 5 years, Dubai added approximately 470,000 residents, emphasizing the city’s sustained attractiveness for relocation.
With projections estimating Dubai’s population to reach 7.8 million by 2040, the real estate market is well-positioned to capitalize on sustained growth. In 2025, Dubai’s population is expected to reach 4 million which will likely drive strong demand growth across all property segments.
