The Dubai real estate sector witnessed significant growth last year, with sales reaching AED488bn ($133bn) until December 10, 2024, according to Bayut data,
The UAE property portal has unveiled a comprehensive report on Dubai’s most-searched real estate areas for 2024.
The findings reveal a sustained rise in property prices across popular neighbourhoods, driven by robust demand, a steady supply of new inventory and Dubai’s growing allure for high-net-worth individuals attracted by its economic prospects and favourable tax policies.
Dubai real estate 2024
Bayut’s data revealed significant price increases for both apartments and villas in popular Dubai neighbourhoods, particularly for villas in Arabian Ranches, which saw rises of up to 56 per cent.
Buyers and investors interested in affordable property options have shown greater inclination towards areas such as:
- Silicon Oasis
- Sports City
- DAMAC Hills 2
- Dubailand
For mid-range property, buyers have focused on neighbourhoods such as:
- Jumeirah Village Circle
- Business Bay
- Al Furjan
- The Springs
Luxury investors have shown preference for:
- Dubai Marina
- Downtown Dubai
- Dubai Hills Estate
- DAMAC Hills
Transactional prices for affordable apartments in the most-searched-for areas have increased up to 26 per cent, while villa prices showed upticks of over 100 per cent with Dubailand recording the most significant spike due to an increased demand for budget-friendly homes and residential plots.
In the mid-tier segment, transactional prices for both apartments and villas have risen by between 7 per cent and 40 per cent.
The highest price movements were recorded in Jumeirah Lake Towers, where inventory is being priced at a premium to tackle the increased demand for centrally-located apartments.
The luxury property market has seen consistent increases, with prices climbing by 7 per cent to 31 per cent, with the steepest hikes recorded in Dubai Hills Estate.
Transactional prices for apartments in Palm Jumeirah have recorded an 8.4 per cent decrease as per the DLD.
As per Bayut’s Dubai Transactions data, derived from carefully analysed information provided by the Land Department (DLD), there were more than 169,000 property sale transactions recorded in 2024, valued at AED488bn ($133bn) until December 10, 2024.
The ready segment accounted for over 67,000 transactions exceeding AED274bn ($74.6bn), while the off-plan segment achieved over 102,000 transactions worth AED213bn ($58bn).
Affordable apartments in areas such as Dubai Investments Park (DIP), Discovery Gardens and Liwan have offered the highest yields of 9 per cent to 11 per cent.
Mid-tier communities such as Living Legends, Motor City and Al Furjan have recorded ROI percentages above 8.7 per cent.
Luxury apartments in Al Sufouh, Green Community and Al Barari have reported rental yields between 7 per cent and 9 per cent.
For villas, Industrial City, International City and DAMAC Hills 2 have led the affordable segment with ROIs above 6 per cent.
Mid-tier villa communities, including Jumeirah Village Circle, Al Furjan and Jumeirah Village Triangle, offered returns of between 6 per cent and 8 per cent.
Luxury villa communities including The Sustainable City, Al Barari and Tilal Al Ghaf recorded ROIs exceeding 6 per cent.
Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, said: “Dubai’s real estate market is buzzing right now and it’s easy to see why. Luxury properties in areas such as Palm Jumeirah and Dubai Hills Estate are breaking records, with buyers from Europe and Asia flocking to secure ultra-high-end homes.
“At the same time, we’re seeing tremendous interest in emerging areas such as Dubai South and Dubai Creek Harbour, driven by improved infrastructure and strategic locations.
“With over 4 million expats expected to be residing in Dubai by 2025, the surging demand for housing is likely to continue apace.
“This presents exciting opportunities for everyone in the industry. Dubai is cementing its place as a global lifestyle and investment destination and I feel the next few years are poised to redefine the market.”
Bayut’s data has also indicated significant rental price hikes across all segments. Subsequent to increased demand, the rents for affordable apartments have risen by up to 48 per cent, with the largest increase reported for two-bedroom flats in Deira.
Mid-tier apartment rentals have increased by up to 41 per cent, highlighting the increasing demand for centrally-located properties, particularly in JLT. Luxury apartment rents have seen growth of between 5 per cent and 25 per cent.
Villa rental prices have also experienced growth, with affordable villa rentals increasing by up to 44 per cent.
The mid-tier villa rental market has also recorded upticks of up to 45 per cent, particularly for four-bedroom units in Town Square, with more people desiring suburban properties in self-sustaining communities.
With the demand for luxury properties at an all-time high, upscale villa rentals have surged by up to 60 per cent, with Jumeirah registering the highest increase for its larger six-bedroom units.
Popular areas for affordable rentals included Deira and Bur Dubai for apartments and DAMAC Hills 2 and Mirdif for villas.
In the mid-tier market, Jumeirah Village Circle (JVC) and Business Bay have dominated apartment rentals, while JVC and Town Square were preferred for villas. Marina and Downtown have continued to be sought-after for luxury apartments, while Dubai Hills Estate and Al Barsha have topped the villa rental market.
Transactional rental prices in affordable areas rose by between 5 per cent and 19 per cent, while mid-tier and luxury segments have recorded upticks of up to 16 per cent.
Dubai’s real estate growth is driven by a combination of favourable government policies, a thriving economy and increasing global interest from high-net-worth individuals.
Additionally, Dubai’s focus on sustainable and technologically advanced developments has further enhanced its appeal. The luxury property segment, affordable housing and high-demand off-plan projects present lucrative investment opportunities, delivering robust rental yields and significant potential for long-term capital appreciation.
This dynamic environment positions Dubai as a prime destination for diversified real estate investments.
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