Dubai’s real estate market has emerged as a hub for investors and homebuyers in recent years, offering a range of properties with luxurious amenities and attractive returns on investment. The emirate continues to strengthen its global appeal as it further solidifies its position as one of the most dynamic and sought-after residential markets,
The latest report by Metropolitan Homes shares some interesting insights into Dubai’s secondary property market for end-users, investors and wealthy asset owners. It provides an in-depth review and highlights an exceptional performance in Dubai’s secondary sales market.
Investing in Dubai real estate
Dubai’s real estate market has shown remarkable strength and growth in the first half of 2024. The sector reported record-breaking sales volume and price increases, demonstrating Dubai’s thriving economy and its continued appeal as a global real estate destination.
“As Dubai continues to benefit from its global standing as an attractive international city, we are confident about the future growth of the real estate market, driven by factors such as increasing foreign investment, infrastructure development, and the city’s ongoing efforts to attract talent and businesses,” stated Svetlana Vasilieva, head of secondary sales at Metropolitan Homes.
Residential resale market surges
Dubai’s residential resale market has seen significant growth recently. Transaction volumes increased by 17.8 percent year-over-year to 27,949 and transaction values rose 23.1 percent to AED76.34 billion ($20.78 billion) during the first half of 2024.
The average residential resale price per square foot rose to AED1,545 in the first half of the year, almost a 7 percent increase compared to H1 2023.
Despite the floods that impacted the city in April, the market quickly rebounded to record-breaking levels. May 2024 set a new benchmark with 17,139 residential resale transactions, the highest monthly total on record. This surge highlights the market’s resilience and constant growth momentum.
Apartments remain the most sought-after properties
Apartments remain the most sought-after residential option in Dubai’s real estate sector, accounting for 77 percent of all resale transactions. Apartment sales reached 21,578 units in H1 of 2024, a 20 percent increase from the previous year, with a total value of AED39.99 billion. In addition, the average apartment price rose 5.5 percent to AED1,592 per square foot.
Palm Jumeirah remains the most sought-after area, but Dubai South and Dubai Studio City saw a surge in online searches. The strong demand for apartments reflects Dubai’s appeal for those seeking low-maintenance, high-quality living environments.
Villa and townhouse demand rises
The demand for villas and townhouses in Dubai’s real estate sector has also witnessed a surge. Villa resale values increased by 22.6 percent to AED24.60 billion, with 2,378 transactions. Meanwhile, townhouse resales saw a 37.4 percent increase to AED11.74 billion from 3,993 transactions.
The average residential villa/townhouse price per square foot rose 11.3 percent to AED1,444. This growth indicates a rising demand among families and long-term residents. The number of school students in Dubai doubled since 2008, underscoring the growing trend of expats seeking to raise families in the emirate.
Most popular areas in Dubai
Jumeirah Islands, Mohammed bin Rashid City and Dubai South emerged as some of the most highly sought-after locations for property sales, driven by their strategic development and amenities.
The most sought after areas for apartments this year were Jumeirah Village Circle (JVC), Dubai Marina, Business Bay, and Downtown Dubai.
For villas and townhouses, Al Furjan, Arabian Ranches 3, DAMAC Hills 2, and Dubai Hills Estate emerged as the most popular.
Sector’s future outlook
Metropolitan Homes noted in its report that it remains optimistic about the growth and resilience of Dubai’s residential resale market for the remainder of the year. Despite global uncertainties, Dubai offers a stable and attractive environment for investors and end-users. The market’s strong fundamentals and Dubai’s strategic position make it a compelling choice.
The city’s rising average sales and rental prices indicate a shift towards mid-market properties, aligning with the Urban Master Plan 2040 and the growing population.
The report also reveals that the key areas to watch include Dubai South (EMAAR South, Expo City) and Dubailand (The Valley by EMAAR, The Oasis by EMAAR) with growing investments and more developments upcoming during the remainder of the year.
