The Dubai real estate market is reaching record levels of activity, with residential property sales in the emirate hitting AED191bn ($52.5bn), according to a report published by Espace Real Estate.
Espace Real Estate said this represents an increase of 38 per cent on H1 2023
The villa/townhouse market saw prices increase of an average of 28 per cent in the first six months of the year compared to the same time last year across communities monitored by Espace Real Estate.
Jumeirah Golf Estates was the only neighbourhood to see prices decrease in the past year.
The biggest increases were in Lakes (+59 per cent), Jumeirah Park (+50 per cent), Jumeirah Islands (+43 per cent), Damac Hills (+43 per cent), Arabian Ranches 2 (+29 per cent) and Al Furjan (+29 per cent).
Dubai villa/townhouse sales price increases
| Neighbourhood | H1 2023 | H1 2024 | Change |
| Lakes | AED 5,145,507 | AED 8,196,320 | 59% |
| Jumeirah Park | AED 5,395,800 | AED 8,081,477 | 50% |
| Jumeirah Islands | AED 11,459,952 | AED 16,430,004 | 43% |
| Damac Hills | AED 3,999,248 | AED 5,717,705 | 43% |
| Arabian Ranches 2 | AED 4,020,556 | AED 5,197,711 | 29% |
| Al Furjan | AED 3,191,952 | AED 4,126,310 | 29% |
| Meadows | AED 6,621,703 | AED 8,371,588 | 26% |
| Victory Heights | AED 4,681,957 | AED 5,826,983 | 24% |
| Tilal Al Ghaf | AED 10,543,006 | AED 13,063,142 | 24% |
| Arabian Ranches | AED 5,536,424 | AED 6,797,286 | 23% |
| Town Square | AED 1,952,734 | AED 2,375,268 | 22% |
| Mira, Reem | AED 2,376,152 | AED 2,887,830 | 22% |
| Mudon | AED 3,040,091 | AED 3,690,524 | 21% |
| Springs | AED 2,941,907 | AED 3,527,589 | 20% |
| Palm Jumeirah | AED 31,655,276 | AED 37,576,038 | 19% |
| Green Community | AED 4,471,785 | AED 5,327,335 | 19% |
| Emirates Hills | AED 37,927,188 | AED 44,638,333 | 18% |
| Arabian Ranches 3 | AED 3,120,855 | AED 3,678,286 | 18% |
| Dubai Hills | AED 11,364,781 | AED 12,952,160 | 14% |
| Jumeirah Golf Estates | AED 10,317,649 | AED 9,759,538 | -5% |
John Lyons, managing director of Espace Real Estate, said: “There is a notable trend whereby new residents rent for their first one or two years before becoming the next wave of buyers looking to set down longer term roots for business and lifestyle reasons.
“New residents and the rental market in general help to absorb a large number of newly completed properties.”
Dubai villa/townhouse rent increases
All but one of the villa and apartment communities tracked experienced a rise in the average rental price
The average rental price increase is 23 per cent for the villa/townhouse market.
The villa communities attracting the highest rent increases in H1 of 2024 compared to H1 of 2023 are Palm Jumeirah (+93 per cent), Jumeirah Islands (+47 per cent) and Dubai Hills (+32 per cent)
| Neighbourhood | H1 2023 | H1 2024 | Change |
| Palm Jumeirah | AED 637,298 | AED 1,232,743 | 93% |
| Jumeirah Islands | AED 348,196 | AED 511,813 | 47% |
| Dubai Hills | AED 246,507 | AED 325,373 | 32% |
| Meadows | AED 275,430 | AED 353,796 | 28% |
| Tilal Al Ghaf | AED 183,865 | AED 229,734 | 25% |
| Green Community | AED 214,302 | AED 265,268 | 24% |
| Jumeirah Golf Estates | AED 439,944 | AED 531,209 | 21% |
| Damac Hills | AED 191,322 | AED 227,104 | 19% |
| Mudon | AED 148,724 | AED 176,181 | 18% |
| Springs | AED 142,576 | AED 167,437 | 17% |
| Jumeirah Park | AED 263,660 | AED 305,519 | 16% |
| Arabian Ranches | AED 219,783 | AED 254,615 | 16% |
| Al Furjan | AED 143,461 | AED 165,301 | 15% |
| Arabian Ranches 2 | AED 205,557 | AED 233,765 | 14% |
| Town Square | AED 114,338 | AED 130,172 | 14% |
| Mira, Reem | AED 127,935 | AED 144,636 | 13% |
| Victory Heights | AED 261,504 | AED 293,895 | 12% |
| Lakes | AED 239,250 | AED 256,249 | 7% |
| Arabian Ranches 3 | AED 150,005 | AED 159,059 | 6% |
| Emirates Hills | AED 908,543 | AED 862,095 | -5% |
John Lyons said: “While there will be a surge of rental supply in 2025 and 2026, 80 per cent of this supply will be apartments which tend to accommodate lower number households and therefore the projected population growth required to absorb the supply is often overestimated.
“Furthermore, is it important to note that residential supply must appeal to three distinct and growing demand pools: population growth (residents), exclusive use second home/holiday home buyers, and investors targeting the rising tourist market through managed holiday home investments”.
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