The Dubai real estate market showcased robust performance in the third quarter of 2024 across both residential and commercial sectors, according to a report by Engel & Völkers Middle East, a leader in premium real estate services. The quarter recorded combined sales totaling AED138.8 billion ($37.79 billion), underscoring Dubai’s global appeal to investors.
The commercial sector contributed AED23.2 billion in sales, reflecting a remarkable 28% increase in transaction value. Meanwhile, the residential market saw a significant boost, with transactions soaring by 40.8% year over year, accounting for AED115.6 billion. Key factors driving this growth include strong economic fundamentals, heightened foreign investment, and Dubai’s attractiveness as a destination for affluent individuals and businesses. With an expected GDP growth of 3.9% in 2024 and 6.2% in 2025, fueled by sectors such as real estate, tourism, and international trade, the momentum appears promising.
Daniel Hadi, CEO of Engel & Völkers Middle East, stated, “Dubai’s real estate market continues to demonstrate resilience and global appeal, with substantial growth in both sectors. The emirate’s strategic vision, business-friendly atmosphere, and exceptional infrastructure attract investors worldwide.” He added, “With demand for premium properties at an all-time high and government initiatives supporting economic diversification, we anticipate sustained growth across all real estate segments.”
Surge in Off-Plan Property Demand
The residential sector exhibited impressive results in Q3, with total transaction volumes climbing 40.8% year over year to AED115.6 billion. Off-plan properties accounted for more than 65% of all transactions, driven by new projects and increased investor interest. Over 30,000 off-plan units were sold in Q3 alone, marking a 62.5% increase compared to the previous year. Areas such as Dubai Creek Harbour and Sobha Hartland II garnered significant interest, while established communities like Jumeirah Village Circle, Dubai Hills Estate, and Business Bay remained popular.
The secondary market also experienced a 12.8% rise in transaction volumes, reflecting ongoing demand for move-in-ready properties. Despite price increases exceeding 15% in many areas, sales of villas and townhouses flourished in Emirates Living, Al Furjan, and Mohammed Bin Rashid City, with strong apartment sales in key neighborhoods.
Luxury Real Estate Market Poised for Record Year
Despite a slight decline in transactions exceeding AED10 million by 6% from Q3 2023, Dubai’s luxury real estate sector is on track for a record-breaking year. The Palm Jumeirah saw 110 transactions exceeding AED10 million, including a notable penthouse sale for AED 275 million, showcasing the sustained demand for ultra-luxury properties. High demand also persisted in renowned luxury areas like Mohammed Bin Rashid City and Dubai Hills Estate, as well as emerging neighborhoods such as The Oasis and Palm Jebel Ali, attracting affluent buyers seeking upscale real estate.
Strong Growth in the Commercial Sector
The commercial real estate market reported impressive growth in Q3, with sales reaching AED23.2 billion—a 28% increase in transaction value year over year. This growth reflects strong demand for high-end commercial properties, with office sales increasing by 12.6% and retail transactions rising by 16.8%. Prime locations like Business Bay and Jumeirah Lakes Towers (JLT) remain popular choices for office space, solidifying Dubai’s status as a leading international business hub.
Despite a 6.5% decline in overall commercial sales volumes, rising prices for quality assets have pushed transaction values higher. The industrial sector also experienced growth, with rising rental trends indicating strong demand; office and retail rents increased by 4%, while warehouse rents surged by 19%.
Thriving Leasing Market
The leasing market in Dubai remains robust, partly due to the city’s growing population. Rental transactions are concentrated in popular communities like Dubai Marina, Jumeirah Village Circle, and Dubai Silicon Oasis. While many tenants are opting to purchase or extend their leases, rental prices continue to rise, with average rents in several areas experiencing double-digit increases.
Bright Future Ahead
Looking ahead, the UAE economy is projected to grow by 3.9% in 2024 and 6.2% in 2025, positioning Dubai’s real estate market for sustained growth. Government initiatives aimed at diversifying the economy, particularly in key sectors such as technology, healthcare, and green energy, are expected to further stimulate demand in both residential and commercial markets.
Source:Propertynews.ae