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.
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