Dubai’s real estate market has been setting records, with 2024 marking an exceptional year for both sales volumes and values. As the city anticipates the addition of over 100,000 new villas and apartments by 2025, experts predict a potential stabilization in rents and property prices, offering relief to residents and investors alike.
Supply Surge to Address Rising Demand
Between January and September 2024, Dubai introduced 106,700 new units, a significant jump from 76,000 during the same period in 2023. This upward trend is expected to continue, with 110,000 additional units scheduled for completion by the end of 2025. This robust pipeline aims to meet the growing demand driven by an influx of professionals, investors, and expatriates, as Dubai’s population continues to expand.
The influx of supply is expected to help moderate the rising rental and property prices that have reached historic highs. Swapnil Pillai, director for real estate research at Emirates NBD Research, noted, “This new strong supply will bring stability in prices and reduce the rental rates in the emirate.”
Record-Breaking Transactions in 2024
Dubai’s property market experienced record-breaking activity in 2024. More than 180,900 transactions worth approximately AED 522.1 billion were recorded, representing a 36% increase in volume and a 27% rise in value compared to 2023. The off-plan market has been a significant driver of this growth, with off-plan properties accounting for 72% of total demand in September 2024, up from 62% in January. Investors continue to be drawn to future-ready developments offering long-term value.
Luxury properties remain a key attraction, with areas like Palm Jumeirah and Dubai Hills Estate leading the charge. Farooq Syed, CEO of Springfield Properties, highlighted Dubai’s appeal as a lifestyle destination: “Buyers are choosing Dubai for its world-class amenities, safety, and strategic location.”
Primary and Secondary Markets on the Rise
The primary market saw a 30% year-on-year growth in transaction values, reaching AED 334.1 billion. New project launches and favorable payment plans have bolstered demand, attracting both local and international investors. In the secondary market, resale transactions increased by 14%, totaling AED 188.1 billion, as investors capitalized on high rental yields and ready-to-move-in properties.
Emerging areas like Madinat Al Mataar and Wadi Al Safa 5 have gained traction, reflecting a growing preference for suburban living and integrated communities. Al Barsha South 4 emerged as the top-performing area in the primary market, with 12,878 first-time sales worth AED 13.5 billion.
Technology-Driven Transparency in Rentals
To enhance transparency and ensure fairness, the Dubai Land Department launched the Smart Rental Index 2025. This AI-powered system evaluates properties based on various criteria, including location, quality, and facilities, providing accurate rental valuations. With over 900,000 rental contracts registered in 2024, an 8% increase from the previous year, the initiative aims to build trust among stakeholders and support sustainable market growth.
Looking Ahead
As Dubai continues to expand its real estate portfolio, the outlook remains positive. While the influx of new supply may lead to a moderation in rents and prices, the city’s business-friendly environment, strategic location, and world-class infrastructure will likely sustain its appeal to global investors. Ready to invest in Dubai’s dynamic real estate market? Whether you’re looking for a luxury property or a future-ready investment, contact us today to explore the opportunities awaiting you.