Dubai's residential property market secures record-breaking 169,000 transactions in 2024
243,000 new units in pipeline, rental yields stay strong, mortgage transactions soar, off-plan dominates
Dubai – Dubai's residential property market soared to new heights in 2024, with a record-breaking 169,000 sales – an increase of 42% on 2023, says leading real estate advisory and property consultant, Cavendish Maxwell.
Prices saw sustained increases during the year, ending 0.9% up month-on-month in December, and 3.1% higher than the previous quarter. Year-on-year, prices rose 16.5%, with the cost per square foot reaching AED1,493 in December – an increase of more than 90% on the April 2009 low, according to Cavendish Maxwell's 2024 Dubai Residential Market Performance report.
Dubai's residential property sector closed 2024 with 47 months of continuous price rises. However, as anticipated by Cavendish Maxwell, the rate of appreciation is starting to slow, with monthly growth now hovering around 1%, compared to previous month-on-month increases of up to 2.5%.
Mortgage activity also soared in 2024, hitting an all time high of 36,600 loans – up almost a third on 2023. The booming off-plan sector continued to dominate the market, with sales four times up on pre-Covid levels. Almost 145,000 new off-plan units came to the market during the year – an average of 400 per day, the report shows. Emaar Properties, Binghatti Properties and DAMAC Properties led the new launch market in terms of both units released and sales value. In 2024, under construction projects represented 68% of the total residential market.
Ronan Arthur, MRICS, Partner and Head of Residential Valuation at Cavendish Maxwell, said: 'These impressive figures are not just the result of the recovery from the pandemic. They reflect a strong, stable property market that has seen consistent growth since 2022, driven by continued international demand from India, China and other Middle Eastern countries in particular. While Dubai's residential market remains extremely robust, with further growth expected in 2025, there are now signs of an adjustment to more sustainable levels. As with previous market cycles, the emirate's regulators, developers and investors are taking the right steps to avoid runaway growth which, as we have seen before, could threaten market stability.'
Apartments accounted for 81% of residential property purchases in 2024, an increase of 3% on the previous year. Townhouses took 13% of the share, a 1% drop, and villas 6%, a decrease of 2% on 2023.
Location, location, location
Mohammed Bin Rashid City saw the highest number of units delivered in 2024, with 5,300 new homes, followed by Jumeirah Village Circle (circa 4,800), Business Bay (2,800), Al Furjan (2,600) and Rukan, Dubailand (1,500), according to the Cavendish Maxwell study. The future supply table is topped by Jumeirah Village Circle, where almost 25,000 units are set to be delivered between now and 2027, followed by Business Bay (16,000), Azizi Venice (13,500), DAMAC Lagoons (11,100) and Arjan (9,000).*
Jumeirah Village Circle also claimed the number one spot for apartment sales – for both title deed and off plan transactions, at 4,048 and 11,917 respectively. In second place for title deed transactions was Business Bay (3,400), followed by Dubai Marina (2,963), Downtown Dubai (2,289) and International City (1,927). In the off-plan sector, Business Bay saw 6,779 transactions, followed by Dubai Hills (5,487), Mohammed Bin Rashed City (4,156) and Sobha Hartland II (3,957).
DAMAC Hills 2 was the leading location for title deed villa and townhouse transactions, at 3,559 – almost twice as many as the second highest, DAMAC Lagoons, which saw 1,372 transactions. The Acres commanded 896 sales, followed by Emirates Living (802) and Al Furjan (729). Top of the off-plan charts was The Valley, with 2,850 sales, followed by Emaar South (1,721), DAMAC Riverside (1,620), Haven (743) and Reportage Village (663).
Price performance
Apartment prices rose in most areas across Dubai last year, with Barsha Heights commanding the biggest increase: 33% higher in Q4 2024 than in the same period in 2023. Next was Dubai Silicon Oasis at 24%, followed by Jumeirah Lakes Towers at 21%. Prices dipped in Dubai Production City, with a 6% drop, Bluewaters Island (4%) and Mohammed Bin Rashid City (2%).
Costs of villas and townhouses increased in all areas studied, with the highest rise at Nad Al Sheba, where home prices were up 54% in Q4 2024 compared to Q4 2023. In second place was Jumeirah Village Triangle (33%), followed by Dubai South (29%).
Robust rental yields …
Gross rental yields remained robust across Dubai throughout 2024, underscoring the city's position as a key destination for investors seeking strong returns. At year end, average yields were 7.4% for apartments and 5.1% for villas and townhouses. Topping the rental return charts at the end of the year were Dubai Investments Park (10.3%), International City (9.4%) and Dubai Production City and Downtown Jebel Ali (both 8.6%).
Cavendish Maxwell's research shows that two cheques is the most popular rent payment plan, applicable to almost 40% of tenants. Just over 35% pay in one cheque and 18.5% make four payments. Landlords generally prefer one or two lump sums, which in some instances can result in discounted rent for tenants.
… And higher rental costs
Average rents were up in most Dubai residential areas during 2024, but the rate of increases varied widely. For apartments, the biggest hikes were in Dubai South, where rents were 30% up on the previous year, followed by Al Furjan (27%) and Dubai Production City (24%). There were much smaller increases at Palm Jumeirah (5%), Al Habtoor City (3%) and Bluewaters Island (1%).
While Palm Jumeirah's apartment rental prices saw a nominal increase, it was a different story for villas, where rates were up 52% on 2023. The second highest rise for villas and townhouses was at Al Furjan (39%) with Dubai Investments Park at 38%.
Pipeline projects
Dubai's residential property sector has 243,000 units in the pipeline from now until the end of 2027, with apartments accounting for 80% of the future inventory. Areas with the largest upcoming supply, with 2,000+ units on the way, include Palm Jumeirah, Dubai Hills, Dubai Marina, Jumeirah Village Circle and Triangle, Al Furjan, Dubai Silicon Oasis, Town Square and Studio City.
Download the full Cavendish Maxwell Dubai Residential Market Performance report here. To contact Cavendish Maxwell, email dubai@cavendishmaxwell.com
For media enquiries, please contact: Rebecca Rees at rebecca@rebecomms.com
* All figures are approximate at the time of publishing.
About Cavendish Maxwell
Cavendish Maxwell is one of the Middle East's leading real estate advisory groups and property consultants, with offices in Dubai, Abu Dhabi, Sharjah, Ajman, Kuwait City and Muscat. The company is a member of the Royal Institution of Chartered Surveyors (RICS) and offers a full range of property-related services, including valuation, strategic advisory, research, project and building consultancy and investment and commercial agency expertise. With a team of experienced professionals and a commitment to delivering exceptional service, Cavendish Maxwell has established itself as a trusted advisor in the regional real estate market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Tourism Breaking News
10 hours ago
- Tourism Breaking News
ITB Asia 2025 to focus on ME and GenZ travellers
Post Views: 28 TTME in an exclusive interview with Darren Seah – Executive Director – ITB Asia shared that this year their focus shifts in the industry—particularly the growing influence of the Middle East market and the rising power of Generation Z travellers. The Middle East continues to play a pivotal role in shaping Asia-Pacific's travel dynamics. With a reputation for luxury, experiential travel, and high-value outbound tourism, the region's significance is only increasing. Seah shared, 'Oman is joining us this year, and we're in active discussions with other Middle Eastern destinations including the UAE.' He further added, 'We were recently in the UAE, engaging with key stakeholders to strengthen regional collaboration.' This growing engagement aligns with the broader tourism strategies of countries like Saudi Arabia, the UAE, and Qatar—each investing heavily in hospitality infrastructure, cultural offerings, and mega-events, as part of long-term national visions such as Saudi Vision 2030. For ITB Asia, this means not just showcasing the region as a destination, but also as a vital source of outbound travellers seeking immersive, high-quality travel experiences across Asia-Pacific.
Arabian Post
15 hours ago
- Arabian Post
Saudi Oil Flow to China Inches Down Amid OPEC+ Expansion
Saudi Arabia will export about 47 million barrels of crude to China in July, marking a modest decline of one million barrels compared with June allocations. Despite the slight reduction, this remains the third consecutive month of elevated shipments to the world's largest crude importer, underscoring Riyadh's resurgence in securing market share. This shift follows a decision by OPEC+—a coalition of the Organisation of the Petroleum Exporting Countries and key allies—to increase collective oil production by 411,000 barrels per day in July, mirroring identical output hikes in May and June. Within this framework, Saudi Arabia has strategically adjusted its allocations across refiners within China's vast energy landscape. State-owned giants Sinopec and PetroChina, alongside the Aramco-Sinopec joint-venture Fujian refinery, are designated to receive greater volumes in July. Conversely, independent processors such as Rongsheng Petrochemical, Hengli Petrochemical, and Shenghong Petrochemical face reductions. This redistribution highlights a prioritisation of established, integrally linked buyers amid a backdrop of expanding OPEC+ supply. ADVERTISEMENT Although Aramco has yet to comment publicly, the company's allocation strategy aligns with broader pricing adjustments. Saudi Arabia recently reduced the official selling price of its Arab Light grade to Asia for July, setting it at $1.20 per barrel above the Oman/Dubai benchmark—20 cents less than June's pricing and the lowest benchmark since May. This pricing decision reflects two intertwined considerations: increased global supply and sustained domestic demand. Internally, Saudi Arabia ramps up crude consumption for power generation and refinery throughput during the summer months. This seasonal domestic demand can restrict exportable volumes, prompting a more conservative OSP reduction compared with the broader cutbacks anticipated by markets. Meanwhile, the continued output expansion under OPEC+ serves both competitive and geopolitical objectives, helping Riyadh reclaim influence in key markets. OPEC+ members have collectively unwound approximately 1.37 million bpd of previously implemented cuts since April, which form part of an initial 2.2 million bpd reduction plan initiated in early 2025. The restored output aims to counterbalance growing global non-OPEC production and mitigate domestic political pressure—particularly from the US, which has advocated for greater oil supply. Notably, seven other nations in the coalition also agreed to this third consecutive increase, reinforcing OPEC+'s strategic shift towards output recovery. Market analysts indicate that larger increases in crude availability have begun to weigh upon Middle Eastern benchmarks, with the June OSP developments 'less aggressive' than anticipated, partly due to Saudi Arabia's own intensified refinery runs. Global demand dynamics further complicate the outlook, with potential softening in Chinese economic indicators and US-China trade negotiations influencing futures pricing. This recalibrated export approach reflects a nuanced balancing act for Saudi Arabia: securing long-term contracts with major Chinese refiners while managing domestic consumption and contributing effectively to global supply strategies. Analysts point out that the kingdom has largely succeeded. Brent crude futures have remained stable around $65 per barrel, with occasional upward pressure following confirmation of July's OPEC+ increment. ADVERTISEMENT Within China, diversions in allocations have specific implications. State refiners, many with government backing and deeper logistical links to Aramco, stand to gain from increased shipments. Independent refiners, essential drivers of private-sector energy demand, are compelled to source a greater share of crude from alternative suppliers such as Russia, the Middle East, or emerging West African producers. Their reduced access to Saudi barrels may translate to thinner margins amid said competition. Chinese crude throughput data underscores this evolving dynamic. Earlier this year, the nation's refiners reached record-high processing levels—nearing 14.8 million barrels per day—yet faced maintenance schedules and weakening export margins for oil products. These factors have cooled demand from some processors, slightly alleviating pressure on upstream supply chains. Within OPEC+, calls for coherence and strict quota compliance persist. Saudi Arabia has publicly censured members like Kazakhstan for exceeding agreed production levels, underlining Riyadh's insistence on an equitable distribution of output responsibilities. Expectations remain that OPEC+ may complete the unwind of its 2.2 million bpd voluntary cuts by the end of September, though some analysts caution that internal discipline could falter, potentially reshaping future output and pricing trajectories. Against this backdrop, Saudi Arabia's adjusted supply to China illustrates both strategic recalibration and geographic realignment. By trimming shipments marginally from independents, bolstering allocations to state-linked refiners, recalibrating export prices, and synchronising with collective OPEC+ policies, the kingdom is reinforcing its position in a price-sensitive, competitive marketplace. July's allocations represent not a retreat but a fine-tuned manoeuvre in a complex global chessboard. Saudi Arabia is both maintaining influence and responding to evolving domestic and international demands. While Chinese imports continue at robust levels, the marginal dip signals a deliberate redistribution rather than a market-driven contraction.
Arabian Post
15 hours ago
- Arabian Post
Emirates NBD Targets A$10-Year Kangaroo Bond Amid Strong Investor Demand
Emirates NBD, the UAE's second-largest bank by total assets, has initiated a mandate for a possible 10-year fixed-rate 'Kangaroo' bond denominated in Australian dollars under its A$4 billion Kangaroo Debt Issuance Programme. The bank is seeking indications of interest at initial price thoughts of about 195 basis points above the relevant asset swap rate, aiming to meet growing appetite among institutional investors for high-quality yield. The bond is expected to carry a credit rating of A1/A+ from Moody's and Fitch respectively, matching those of the issuer. The bond would be senior unsecured debt with an indicative coupon of around 6.00%, pricing in line with a potential yield of approximately 6.05%. The issuance is scheduled for pricing on 11 June, with Emirates NBD Capital, Mizuho and Nomura appointed as joint lead managers and bookrunners, signalling robust global distribution capabilities. Australia's Kangaroo market, known for inviting foreign issuers to raise AUD-denominated funding, continues to attract significant interest from international banks seeking to diversify investor bases. Emirates NBD previously tapped this market in February 2023, successfully raising A$450 million with a 10-year bond at a coupon of 6.1%, which translated to a yield of 6.122%, with lead syndicate roles shared by ANZ, Emirates NBD Capital, JPMorgan and Nomura. ADVERTISEMENT Emirates NBD's decision aligns with broader shifts in global capital markets, where yield-seeking investors have increasingly turned towards emerging markets and non-domestic issuers. With global central bank rates remaining elevated by historical standards, the return profiles for emitters such as Emirates NBD remain competitive and compelling relative to their credit quality. In issuing under its A$4 billion programme, Emirates NBD gains operational efficiency and flexibility, enabling quicker access to Kangaroo debt markets across multiple tranches and tenors. This is increasingly important as the bank seeks to balance its funding mix and hedge foreign exchange exposures, while also responding to investor demand for Australian dollar-denominated debt. The joint appointment of Emirates NBD Capital, Mizuho and Nomura suggests a balanced distribution strategy spanning Middle Eastern, Asian and Australian investor bases. Mizuho and Nomura bring strong regional connections, while Emirates NBD Capital reassures existing institutional clients and opens up Gulf-based connections. These partners typically assist in roadshows and investor education, critical to achieving desired guidance levels within a tight spread band. The announced IPT of ASW +195 is slightly tighter than previous placements, including the +200 bps initial range for the issuer's 2023 Kangaroo issuance. That earlier deal priced at about +190 bps over semi-annual swaps, reportedly oversubscribed and closed near the high of guidance at +190 bps. This signals both confidence from investors and the bank's ability to leverage its credit rating improvements and market familiarity among bond buyers. Emirates NBD's credit ratings—A1 from Moody's and A+ from Fitch—are stable and investment grade, contributing to investor trust. The structure of the bond, senior unsecured, ensures it ranks equally with the bank's other senior debt instruments, offering a transparent risk profile. This clarity is increasingly valuable in a fragmented global debt landscape. ADVERTISEMENT From a broader perspective, the Kangaroo bond market remains an attractive source of funding for non-Australian issuers. Despite global economic uncertainty and central banks in developed markets maintaining restrictive stances, Australia continues to offer a relatively deep and liquid market for AUD debt issuance. Borrowers such as Korean and UAE banks, supranationals, and corporate issuers have consistently returned to Kangaroo markets, with transactions spanning green and social bond categories. The presence of repeat issuers, like Emirates NBD, demonstrates the market's capacity to absorb benchmark-sized offerings and incentivises future jumbo deals. The bond's expected settlement date coincides strategically with market calm, ahead of potential volatility later this month. It allows the issuer to lock in yields and spreads before any shifts by the Reserve Bank of Australia or international central banks may influence market tone. Market participants note that Kangaroo bond spreads have tightened modestly year‑to‑date, reflecting a combination of steady demand for AUD assets and limited supply, as domestic issuers remain cautious about issuance volumes. Investors are closely analysing the macro backdrop as well. With Australia's inflation rate cooling but still above target, and rate cuts yet to be firmly priced, the yield curve remains attractive. At the same time, credit spreads for Gulf-based issuers have narrowed following positive ratings actions earlier in 2025—including recent upgrades to Emirates NBD's long-term foreign-currency rating by Moody's and reaffirmation from Fitch. Emerging-market bond funds and Australian institutional investors have strengthened allocations to foreign bank bonds over the past two years, partly driven by yield differentials. The A$ mandate from Emirates NBD therefore arrives at a juncture when sources of long-dated, investment-grade AUD debt remain limited: Australian domestic issuers primarily focus on shorter tenors, while many supranationals have paused issuance. Within that context, the expected coupon of 6.00% positions Emirates NBD within line with peer Gulf and Asian issuers, though still appealing versus domestic equivalents. The pricing strategy—fixed coupon yielding slightly above the indicative spread—indicates modest downward flexibility built into the range, suggesting confidence in investor appetite. The syndication strategy also reflects a desire to balance pricing certainty with market reach. As joint bookrunners, Emirates NBD Capital, Mizuho and Nomura will engage with global buy‑side accounts, including Australian super funds, asset managers and credit hedge funds looking to overlay returns in a higher‑yield environment. Observers view this Kangaroo issuance as both a statement of strategic intent by Emirates NBD and a confirmation of investor trust in the bank's creditworthiness. By revisiting the 10-year tenor after a two-year hiatus, the bank signals comfort with reengaging long-term markets amid evolving economic trends. Prospective investors will closely monitor investor feedback during this week's marketing phase. A well-received launch—evidenced by an oversubscription or tightening of final pricing to below the IPTs—may encourage further Kangaroo tranches later this year, potentially expanding tenor or volume.
