Dubai’s affordable real estate segment experienced notable growth last year as more tenants shifted toward property ownership, data revealed.
Emirates NBD Research reported that units priced between Dh1 million and Dh2 million saw a significant 71 per cent year-on-year increase in demand.
The city recorded over 168,000 residential transactions across freehold markets in 2024, according to Emirates NBD. Of these, 114,480 were for under-construction units, with their share of total transactions rising from 54 per cent in 2023 to 68 per cent in 2024.
Reflecting the surge in demand, Dubai launched an unprecedented 142,000 units citywide in 2024.
“Since December 2020, average apartment prices have risen by 65 per cent, while villa and townhouse rates per square foot have more than doubled,” wrote Swapnil Rajasekharan Pillai, Director of Real Estate Research at Emirates NBD.
In the fourth quarter, sales transaction values reached Dh116.5 billion, a 31.1 per cent year-on-year growth, with transaction volumes increasing by 51.8 per cent to 46,844 deals.
Springfield Properties’ Q4 2024 Dubai Real Estate Market Report highlighted the off-plan market as a key growth driver, contributing over half of the total transaction value. Dubai’s luxury property segment also continued to attract high-net-worth individuals and institutional investors. Established areas like Palm Jumeirah, Downtown Dubai, and Dubai Marina remained popular for their exclusivity, lifestyle appeal, and long-term value.
Farooq Syed, CEO of Springfield Properties, said, “Dubai’s real estate market reflects strength and global appeal, driven by strategic planning, visionary projects, and investor confidence. This growth aligns with evolving buyer preferences while raising standards in quality, innovation, and sustainability.”
The report emphasized the off-plan segment’s critical role in Dubai’s real estate success, with 30,388 Q4 transactions supported by innovative payment plans and strong investor demand for future-ready properties. Areas like Dubai South and Jumeirah Village Circle emerged as hubs for mid-income buyers, while luxury developments in Palm Jumeirah and Dubai Hills Estate attracted global buyers seeking exclusivity and modern living.
Simultaneously, the luxury segment cemented its position as a market value driver, with premium properties in Palm Jumeirah achieving the highest average sales price at Dh4,600 per square foot. These figures underscore Dubai’s ability to meet the demands of the ultra-luxury market.
“Dubai attracts high-net-worth individuals by seamlessly integrating lifestyle, security, and strategic value,” Syed added. “The city offers not only world-class amenities but also aligns with aspirations for long-term growth and stability.”
With Dubai’s population expected to reach 4 million in 2025, demand for properties across all segments continues to grow. Strategic infrastructure in areas like Dubai South is set to complement the enduring appeal of luxury hubs like Palm Jumeirah and Downtown Dubai. The city’s alignment with the Dubai 2040 Urban Master Plan highlights its commitment to a sustainable and forward-thinking real estate ecosystem that appeals to global investors and end-users alike.
“Dubai has solidified its position as a global real estate leader by adapting to market trends and embracing innovation,” Syed concluded. “As we enter 2025, the focus will remain on delivering projects that balance inclusivity and exclusivity, setting new standards for urban living.”
The Q4 2024 results mark a milestone year for Dubai’s real estate sector, showcasing its adaptability, resilience, and global appeal. As the city moves into 2025, it is well-positioned to continue redefining the real estate landscape with strategic developments, progressive policies, and a commitment to excellence.
