Jan 30, 2025
In December 2024, Dubai's real estate market continued its upward trajectory, reinforcing its status as a prime destination for investors. The month recorded 15,130 transactions, marking a 37.3% increase compared to December 2023, with total sales values reaching AED 42.7 billion over this period, a 5.1% year-on-year growth.
Apartments were the big movers with 11,615 transactions, while villas followed with 2,441 deals. Commercial properties and plots also added to the action in the market.
Top-Performing Areas
Several neighborhoods stood out for their strong performance:
Jumeirah Village Circle (JVC) is known for its family-friendly environment and community amenities.
Business Bay is a bustling business district with a mix of residential and commercial properties.
Wadi Al Safa 5 is a developing area attracting both investors and residents.
Dubai South is home to the Expo 2020 site, this area is poised for future growth.
Dubai Marina is a waterfront community popular among expatriates and investors.
Price Trends
The average price per square foot reached AED 1,565, marking an 8.6% increase from December 2023. Apartments had an average price of AED 1.2 million, while villas averaged AED 3 million. Commercial properties also saw a notable rise in value, with an average price of AED 1.7 million.
Rental Market
The rental market remained active in December 2024. Apartments had an average annual rent of AED 80,000, reflecting a 17.6% increase from the previous year. Villas saw an average rent of AED 175,000 per year, reflecting a 9.4% rise. The demand for rental properties, especially in prime areas help us to predict ongoing growth and stability in the market.
Government Initiatives and Infrastructure Projects
The government is rolling out big plans with Vision 2033 and Vision 2040, focusing on growing the economy and keeping development sustainable. These initiatives aim to double foreign trade, back global unicorn companies, and make public transportation easier to access. Big projects like the Al Shindagha Corridor and Hessa Street Expansion are also in the works to cut down traffic and make getting around the city smoother.
Mortgage Market
On the mortgage front, things really picked up in December 2024. There were 3,742 mortgage transactions, which is up 44.5% from the previous year. The total value of these mortgages hit AED 24.9 billion—a huge 132.5% jump. This shows growing confidence from buyers and lenders, especially when it comes to high-value properties in prime spots.
Luxury and Affordable Housing
Dubai continues to lead the global luxury property market, with high-net-worth individuals fueling demand in areas like Palm Jumeirah and Downtown Dubai. Properties worth over AED 10 million saw a 47% increase in transactions during the first half of the year.
Affordable housing areas like Jumeirah Village Circle and Dubai Silicon Oasis are becoming increasingly popular with middle-income buyers.
Commercial Properties
Dubai’s commercial real estate market had a solid year, especially in office and logistics spaces. Prices for commercial properties jumped 36.7% compared to 2023.
Co-working and flexible office spaces have been a big hit helping to meet the increasing number of startups, entrepreneurs, and multinational companies coming to Dubai. The e-commerce boom and Dubai’s position as a global trade hub have also fueled demand for high-tech logistics centers. Warehouses with features like automation and eco-friendly tech really stood out in 2024.
Annual Growth
Additional statistics highlight the annual growth of Dubai’s residential real estate market, which recorded a 27.5% annual capital gain in 2024. Villas outperformed apartments with a 31.6% annual growth. Jumeirah Islands led with a 42.5% increase, followed by Palm Jumeirah (42.3%) and Emirates Hills (32.3%). Off-plan properties were the big winners in December, making up 71.1% of all home sales.
December 2024 turned out to be a solid month for Dubai’s real estate scene, with both sales volume and value on the rise. Dubai’s market continues to stand out as a go-to spot for investors, thanks to its variety of property options and steady growth.
A mix of smart government initiatives, major infrastructure upgrades, and an active mortgage market is driving the appeal. Whether you're after a luxury villa or something more budget-friendly, Dubai’s got plenty of opportunities to match different investment needs.
