Market Overview

Dubai’s real estate market concluded 2024 strongly, achieving an impressive average annual capital gain of 27.5%. Residential capital values rose by 1.7% month-on-month in December, slightly lower than November’s 1.8%, marking a consistent trend of a gradual deceleration since August 2024.

Property Type Breakdown

Villas

Villas experienced the highest growth, increasing by 2.1% from November to December, resulting in a robust average annual gain of 31.6%. The usual suspects were:
Jumeirah Islands (a massive 42.5% YoY growth)
Palm Jumeirah (+42.3%)
Emirates Hills (+32.3%)
Dubai Hills Estate (+32.1%)
Jumeirah Park (+28.3%)
Mudon (+13.5%)

Apartments

Apartments saw moderate but steady growth at 1.4% month-on-month, culminating in an annual increase of 23.6%. High-demand communities such as The Greens (31% YoY growth), Palm Jumeirah (28.3%), The Views (27.1%), and Town Square (26.4%) led apartment gains. Conversely, areas such as International City (16.9%) and Dubai Sports City (18.1%) lagged behind.

Sales Transactions

The market dynamics leaned heavily toward off-plan properties, which represented 71.1% of total home sales. Off-plan registrations surged by 26.3% monthly and an astounding 513.8% annually.¹ Meanwhile, ready-home sales contracted by 8.7% monthly and 3.4% annually. This sharp increase in off-plan sales combined with a slight contraction in ready-home transactions, indicates a clear shift toward investor speculation and a longer term investment horizon, highlighting strong confidence in Dubai’s long-term real estate growth.

The premium segment remained active, with 29 transactions recorded for properties valued above AED 30 million, predominantly in exclusive neighborhoods like Palm Jumeirah, Downtown Dubai, and Emirates Hills.

Leading Developers and Locations

Emaar dominated developer sales with a market share of 12.8%, followed by Damac (8.1%) and Binghatti (7.6%).

Off-plan projects were primarily concentrated in Jumeirah Village Circle (13.1%), Business Bay (10.2%), and Dubailand Residence Complex (5.7%). The secondary market for ready properties remained strong in communities such as Jumeirah Village Circle (9.1%), Dubai Marina (6.6%), and Business Bay (6.1%).

Conclusion and Insights

Dubai’s real estate market in December 2024 displayed resilience underpinned by sustained investor interest, despite global economic headwinds. Compared to November, market activity slowed slightly, reflecting cautious optimism amidst global financial uncertainty. Dubai’s economy benefited from stable UAE GDP growth, projected at approximately 4% for 2024, coupled with controlled inflation and moderate interest rate policies from the UAE Central Bank.

Globally, economic uncertainties, including fluctuations in major economies and elevated interest rates, have made Dubai’s relatively stable real estate market particularly attractive to international investors. Looking forward, sustained demand, especially for premium properties and strategic locations, suggests continued strength in Dubai’s real estate sector into early 2025, albeit at a moderated pace.

1. https://valustrat.com/products/dubai-vpi-residential-capital-values-december-2024 ↩︎