In Q3 2024, Dubai’s real estate sector saw record-breaking results, building on the year’s previous growth. Total market sales reached AED 141.9 billion across 50,423 transactions, representing robust quarter-over-quarter growth (16.6%) and a substantial year-over-year rise (37.9%). This surge reinforces Dubai’s appeal as a prime destination for local and global buyers, with high demand in off-plan properties and luxury real estate leading market activity.
Property Types in Demand
Apartments
Apartment sales dominated, making up most Q3 transactions with over 39,000 units sold and totaling AED 70.5 billion in value. This segment saw a 15.6% increase from the previous quarter and a 43.9% jump compared to Q3 2023. Key areas like Business Bay and Dubai Marina were highly sought after, particularly for affordable options and strategic proximity to key business districts. These neighborhoods attract expatriate professionals for their modern amenities, favorable locations, and potential for rental yield, making them ideal for both investors and end-users.
Villas and Luxury Properties
Villas continued to show significant demand, with 8,156 villas sold, generating AED 39.2 billion in sales—a quarterly increase of 18.4%. Prime villa communities like Dubai Hills Estate and Palm Jumeirah attracted high-net-worth buyers seeking larger, luxury homes with top-tier amenities. The ultra-luxury sector also saw remarkable sales, with a standout AED 275 million transaction for a five-bedroom property on Palm Jumeirah, underscoring Dubai’s increasing appeal to ultra-high-net-worth individuals (UHNWIs) globally.
Off-Plan Sales
Off-plan sales dominated Q3 transactions, accounting for 66% of the market. Driven by flexible payment plans and strong projected value appreciation, off-plan properties attracted diverse investor groups. Emerging communities with affordable options, such as JVC, Business Bay, and Dubai South, became prominent hubs for these projects. In Q3 alone, 104 new developments launched, adding over 24,000 units to the market and sustaining strong interest in off-plan investments.
Commercial and Land Sales
While more modest, the commercial sector also performed steadily, with over 1,100 transactions generating AED 2.3 billion in sales. Land sales, however, saw a notable surge, with over 2,100 plots sold, totaling AED 29.9 billion. This 42.3% quarterly increase highlights the continued interest in development land, largely for future apartment projects, in areas expanding to meet growing residential demand.
Price Trends and Market Performance
Property prices for both villas and apartments continued to rise through Q3 2024. Dubai Hills Estate and Jumeirah Park villa prices rose by over 26%, while apartment prices in Dubai Silicon Oasis increased by 26.6%. Consistent demand and limited supply in premium areas contributed to this price growth.
Mortgage registrations rose by 10% over the quarter, signaling sustained market confidence even amid anticipated interest rate changes. Cash transactions, however, decreased by 10%, reflecting a shift towards longer-term financing solutions as prices rise.
Lower Performing Segments: Branded Residences
Branded residences, despite high visibility, showed slower performance in Q3. Observers like Gergana from Sterling Capital Real Estate note that the seasonal focus of high-net-worth buyers on travel likely limited immediate interest. Additionally, the exponential growth in branded residence availability has inflated prices significantly over recent years. For example, while a 2-bedroom apartment in Atlantis The Royal sold for AED 8.5 million tree years ago, similar units nearby now ask almost triple, reducing capital appreciation potential. Trophy home buyers, faced with an increasingly crowded market, are now taking more time to make purchasing decisions.
Outlook for Q4 2024
Supply Expansion: With over 29,000 new units expected in Q4, the market will benefit from increased availability, especially in high-demand areas such as JVC, Business Bay, and Dubai South. New master-planned communities and development projects around the Expo 2020 site are also expected to add further inventory.
Luxury Market Stability: The mid-tier luxury sector is projected to remain robust, bolstered by ongoing foreign investment and Dubai’s allure as a tax-free investment haven.
Rental Market Strength: Dubai’s rental market is forecasted to remain stable, with consistent demand from expatriates driving high yields in sought-after locations. Rental properties in the mid-tier luxury market continue to command strong rents, as high demand has led to a quick turnover in available units.
Global Economic Influence: While Dubai’s market has shown resilience, factors like inflation and regional interest rate changes could influence investor behavior. Geopolitical issues have yet to affect Dubai’s market performance but may be worth watching as Q4 progresses.
Dubai’s real estate performance in Q3 reflects the city’s lasting appeal and adaptability. Off-plan projects, luxury villas, and high-demand apartments lead the market, drawing both local and international buyers. Heading into Q4, Dubai’s real estate market remains promising, supported by new supply, robust demand for luxury properties, and sustained foreign investment. As Dubai solidifies its position as a global investment destination, its real estate sector’s future looks bright.
