Dubai’s real estate market achieved unprecedented success in 2024, setting new benchmarks in transaction volume and value. Demonstrating strong investor confidence and robust demand, the sector has solidified its position as a global leader in real estate.

Key Market Metrics

The year witnessed extraordinary growth across all segments of the market:

• Total Sales Transactions: 168,405
• Transaction Value: AED 423.36 billion (a record high for Dubai)
• Year-on-Year (YoY) Growth: 30% in transaction value and 40% in transaction volume

The off-plan market played a pivotal role, accounting for 63% of total transactions with an impressive 66% YoY growth. Meanwhile, the secondary market saw a solid 14% YoY increase, catering to buyers seeking immediate ownership.

A Milestone Year for Luxury Real Estate

Dubai’s prime property market reached new heights, driven by high-net-worth individuals seeking exclusive properties.

• Definition of Prime Market: Transactions exceeding AED 15 million
• Prime Transactions: 1,938 (63% YoY increase)

Notable Sales:

• Most Expensive Resale Villa: AED 240.5 million (Jumeirah Bay Island)
• Most Expensive Resale Apartment: AED 275 million (The One at Palm Jumeirah)

In addition, 40 super-prime transactions surpassed AED 100 million, further cementing Dubai’s appeal to affluent buyers.

Louis Harding, CEO of Betterhomes, reflected on the market’s remarkable trajectory, stating: “As we reflect on another year of incredible growth and transformation, I am reminded of what makes Dubai’s real estate market truly exceptional. It’s not just the skyscrapers or record-breaking transaction volumes—it’s the vision, resilience, and innovation that define this city. 2024 has been a landmark year, and as we look ahead to 2025, we remain committed to guiding our clients and creating lasting value.”

Outlook for 2025: Growth and Stabilisation

With over 72,000 residential units expected to enter the market, Dubai’s real estate sector is poised for stabilisation in 2025. While price growth may moderate, demand remains robust. The launch of the Smart Rental Index is expected to enhance transparency and fairness in rental pricing, further supporting the market’s evolution.

MENA Real Estate: A Positive Forecast

According to Savills, the Middle East and North Africa (MENA) region is positioned for significant growth:

• Global Investment Turnover: Projected to increase by 27% to $952 billion in 2025, surpassing $1 trillion by 2026.
• Prime Offices: Anticipated as a major growth driver, particularly in Dubai, Riyadh, and other major cities.
• Sectors Poised for Growth: Industrial and logistics, driven by expanding e-commerce, and mixed-use developments enhancing retail and residential spaces.

Richard Paul, Head of Professional Services & Consultancy, Middle East, Savills, noted: “The MENA region continues to demonstrate exceptional resilience and adaptability in the face of global economic shifts. By leveraging its strategic geographic position, ambitious infrastructure projects, and forward-thinking policies, the region is poised to become a top destination for real estate investment in 2025 and beyond.”

Sustainability and Innovation

Environmental, Social, and Governance (ESG) considerations remain a focal point for investors. MENA markets have made significant strides in adopting green building practices, renewable energy projects, and sustainable urban planning. These initiatives are in line with global priorities and meet the growing demand for environmentally conscious investments.

As Paul Tostevin, Head of Savills World Research, aptly summarised: “After a chastening few years, the tide is turning. The cyclical factors weighing on property values and investment activity are beginning to recede, and the nascent recovery in real estate capital markets should gather momentum in 2025.”