Affordable properties are increasingly dominating Dubai’s real estate market as more people choose the emirate as their home, according to recent data released on Tuesday.
Engel & Völkers Middle East, a leader in premium residential and commercial real estate services, reported that properties priced under Dh1 million accounted for 32.2% of sales, up from 26.7% in October. Studios and one-bedroom apartments saw a surge in demand, reinforcing apartments as the dominant asset class, which now makes up more than 84% of total sales.
The top three communities in terms of sales transactions were Jumeirah Village Circle, with 1,035 units sold; Jumeirah Village Triangle, with 670 units; and Business Bay, with 423 units.
Dubai’s real estate market showed strong resilience and growth in November, with the residential sector reporting a 15.4% increase year-over-year, according to Engel & Völkers data.
The city recorded 12,695 residential sales transactions. “Although this reflects a slowdown from October’s record figures, it demonstrates sustainable and steady growth. The average prices saw a slight 0.38% increase, further confirming the market’s upward trend,” Engel & Völkers stated.
Meanwhile, the commercial real estate market performed well, with total sales value reaching Dh9.2 billion, marking a 3.1% year-on-year increase. Office sales jumped by 24.2%, and average prices for offices rose by 31.1% year-over-year, reflecting continued strong demand and limited supply of premium office spaces.
Rental activity also mirrored this growth, with transaction volumes rising 21.9% compared to October. Average rents across all sectors grew by 18.0% year-on-year, driven by office spaces, where average rents increased by 28.1%. High occupancy rates and intense competition for Grade A spaces continue to shape Dubai’s vibrant commercial market.
Business Bay led office transactions with 119 units sold, followed by Jumeirah Lakes Tower and Barsha Heights (TECOM). The top communities for rental transactions were Deira, DIP, and Bur Dubai.
Daniel Hadi, CEO of Engel & Völkers Middle East, remarked: “Dubai’s real estate market continues to showcase exceptional strength and adaptability, fueled by sustained demand and solid fundamentals. The residential sector’s steady growth, particularly in affordable and compact living options, highlights a dynamic, maturing market that caters to diverse needs. Meanwhile, the commercial sector’s strong performance — marked by rising office sales and rents — reinforces Dubai’s status as a global business hub.”
“As Dubai’s economy expands and continues to attract businesses and residents from around the world, the city’s real estate sector is poised for sustained growth. The November report demonstrates the market’s adaptability, strong investor confidence, and potential for record-breaking achievements as we approach 2025,” Hadi concluded.
