Dubai: ‘world’s hottest property investment market’ as 2024 sales top US$142bn

Dubai cemented its status as one of the world’s premier property investment markets in 2024, with the city setting new records for transaction volumes and sales values.

According to data published by Dubai developer fäm Properties, Dubai’s real estate transactions surged to 180,900 deals valued at $142.4 billion, reflecting a 36% increase in volume and a 27% rise in value compared to 2023. This performance eclipsed the previous record of 133,100 transactions worth $112.2 billion.

The primary market drove much of this growth, with off-plan properties proving particularly popular with investors. The total value of off-plan transactions climbed 30% to $91.1 billion, and transaction volumes in this segment rose by an impressive 51%, reaching 119,800 units.

The surge can largely be attributed to the attractive incentives available to investors, including flexible payment plans, residency visas, and a steady supply of innovative projects.

The secondary market also generated significant investor interest, with the total value of sales rising 21% year-on-year (YoY) to $51.2 billion, while transaction volumes increased 14% YoY to 61,100 units.

Apartment sales dominated the market, with 141,168 units sold for $70.9 billion, a 42% increase compared to 2023. Villas sales grew by 21% YoY, with 30,938 units sold for a total value of $44.7 billion.

While established neighbourhoods like Downtown Dubai and Dubai Marina remained investor favourites in 2024, emerging areas are increasingly gaining traction. For example, Al Barsha South 4 recorded 12,878 first-time sales worth $3.7 billion.

Business Bay, a perennial favourite, led the market for sales values, reporting 6,888 transactions totalling $5.7 billion. The area, which houses two upscale hotels owned and operated by The First Group, is a highly popular destination thanks to its central location close to Downtown Dubai and the city’s top business and leisure attractions.

Commenting on the market’s performance, Firas Al Msaddi, CEO of fäm Properties, said: “2024 has been a truly remarkable year for Dubai’s real estate market. Despite global economic uncertainties, transaction volumes have surged, reflecting the market’s resilience. With strong rental demand and a continued appetite for luxury, Dubai’s real estate sector is continuing to attract global investors, cementing its position as a top destination for real estate investment.”

Rising property prices and strong rental yields

Meanwhile, data published by UAE property portal Bayut shows that property prices rose across all segments in 2024. Arabian Ranches saw the highest price hikes of up to 56%, while transactional prices for apartments in neighbourhoods like Dubai Sports City – which is home to five landmark residential towers owned and operated by The First Group – rose by up to 26%. Popular established communities such as Jumeirah Village Circle and Al Furjan also saw annual price increases ranging from 7% to 40%.

The luxury segment saw consistent growth, with prices climbing between 7% and 31%. Notably, properties in Dubai Hills Estate recorded the steepest hikes.

Rental yields have played a pivotal role in attracting investors. Affordable apartments in areas like Discovery Gardens offered ROIs of up to 11%, while mid-tier communities such as Motor City delivered returns of up to 9%. Luxury villas in Al Barari and Tilal Al Ghaf reported rental yields above 6%, providing consistent income streams for investors.

Dubai has also moved to boost investor confidence in the market with the launch of the Smart Rental Index 2025. This AI-driven initiative is designed to ensure fair and accurate property valuations through the integration of advanced building classification systems and real-time market data. The index provides clarity for landlords and tenants, ensuring rental agreements are equitable and sustainable.

Market poised for continued growth

Discussing the outlook for the coming years, Haider Ali Khan, CEO of Bayut, predicted the combination of strong population growth and unprecedented investor demand would drive the market to new heights.

“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,” he said.

“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.”