Dubai Real Estate Report Highlights Fastest Growing Areas, Price Surges, and Best Investment Returns
A new report on Dubai’s real estate market has identified the areas experiencing the highest price and rent growth, the fastest expansion, and the best rental yields for investors.
In 2024, Dubai’s residential property market reached record highs, with 169,000 sales transactions—a 42% rise from 2023, according to Cavendish Maxwell.
Property prices climbed steadily, closing the year with a 0.9% monthly increase in December and a 3.1% rise from the previous quarter.
Dubai Real Estate Investment Returns
Over the past year, prices surged 16.5%, reaching AED1,493 ($407) per square foot in December—more than 90% higher than the April 2009 low, as per Cavendish Maxwell’s Dubai Residential Market Performance report for 2024.
Dubai’s property sector marked 47 consecutive months of price growth. However, as Cavendish Maxwell predicted, the pace of appreciation is beginning to stabilize, with monthly increases now averaging around 1%, down from earlier peaks of 2.5%.
Mortgage transactions also hit record levels, with 36,600 loans issued in 2024—nearly 30% more than in 2023.
The off-plan segment remained dominant, with sales quadrupling compared to pre-COVID levels.
Approximately 145,000 off-plan units entered the market throughout 2024, averaging 400 new units daily.
Emaar Properties, Binghatti Properties, and DAMAC Properties led the market in new launches, both in terms of unit numbers and total sales value.
By the end of 2024, under-construction properties accounted for 68% of the total residential market.
Ronan Arthur, MRICS, Partner and Head of Residential Valuation at Cavendish Maxwell, stated, “These exceptional figures reflect more than just a post-pandemic rebound. They demonstrate a strong and stable property market, consistently growing since 2022, driven by sustained international demand, particularly from India, China, and other Middle Eastern countries.”
He added, “While Dubai’s residential market remains highly resilient, with further growth expected in 2025, there are now signs of a shift towards more sustainable levels. Regulators, developers, and investors are taking strategic steps to prevent runaway growth, ensuring long-term market stability.”
Property Types and Market Share
In 2024, apartments made up 81% of all residential sales, marking a 3% increase from the previous year.
Townhouses accounted for 13% of transactions, down by 1%, while villas comprised 6%, a 2% decline from 2023.
Key Areas for New Developments
Mohammed Bin Rashid City delivered the highest number of new homes in 2024, with 5,300 units, followed by:
- Jumeirah Village Circle (4,800 units)
- Business Bay (2,800 units)
- Al Furjan (2,600 units)
- Rukan, Dubailand (1,500 units)
Looking ahead, Jumeirah Village Circle leads the pipeline with nearly 25,000 units expected by 2027, followed by:
- Business Bay (16,000 units)
- Azizi Venice (13,500 units)
- DAMAC Lagoons (11,100 units)
- Arjan (9,000 units)
Top Areas for Sales Transactions
Jumeirah Village Circle ranked first for apartment sales in both title deed and off-plan transactions, recording 4,048 and 11,917 deals, respectively.
For title deed transactions, the next top locations were:
- Business Bay (3,400 transactions)
- Dubai Marina (2,963 transactions)
- Downtown Dubai (2,289 transactions)
- International City (1,927 transactions)
In the off-plan segment, Business Bay followed with 6,779 sales, trailed by:
- Dubai Hills (5,487 transactions)
- Mohammed Bin Rashid City (4,156 transactions)
- Sobha Hartland II (3,957 transactions)
Villas and Townhouses
DAMAC Hills 2 led villa and townhouse title deed transactions, with 3,559 sales—nearly double that of DAMAC Lagoons, which recorded 1,372 transactions.
Other key areas included:
- The Acres (896 sales)
- Emirates Living (802 sales)
- Al Furjan (729 sales)
In off-plan villa and townhouse sales, The Valley topped the charts with 2,850 transactions, followed by:
- Emaar South (1,721 transactions)
- DAMAC Riverside (1,620 transactions)
- Haven (743 transactions)
- Reportage Village (663 transactions)
Price Trends in 2024
Apartment prices increased in most areas, with the highest growth in:
- Barsha Heights (+33% YoY in Q4 2024)
- Dubai Silicon Oasis (+24%)
- Jumeirah Lakes Towers (+21%)
Conversely, price drops were noted in:
- Dubai Production City (-6%)
- Bluewaters Island (-4%)
- Mohammed Bin Rashid City (-2%)
Villas and townhouses saw price hikes across all studied areas, with the steepest increases in:
- Nad Al Sheba (+54%)
- Jumeirah Village Triangle (+33%)
- Dubai South (+29%)
Dubai’s Rental Market & Returns
Gross rental yields remained strong throughout 2024, reinforcing Dubai’s appeal to investors seeking high returns.
By year-end, average rental yields stood at:
- Apartments: 7.4%
- Villas & Townhouses: 5.1%
Top-performing areas for rental returns included:
- Dubai Investments Park (10.3%)
- International City (9.4%)
- Dubai Production City & Downtown Jebel Ali (both at 8.6%)
Cavendish Maxwell’s research found that two-cheque payment plans were the most common, used by 40% of tenants.
- 35% of tenants paid rent in a single cheque
- 18.5% opted for four installments
Landlords generally preferred one or two lump sums, sometimes offering discounts for tenants paying upfront.
Rental Price Movements
Average rents increased in most areas, but at varying rates.
For apartments, the highest rent surges were seen in:
- Dubai South (+30%)
- Al Furjan (+27%)
- Dubai Production City (+24%)
Smaller increases were recorded in:
- Palm Jumeirah (+5%)
- Al Habtoor City (+3%)
- Bluewaters Island (+1%)
Villa rental prices saw sharper rises, with the most significant increases in:
- Palm Jumeirah (+52%)
- Al Furjan (+39%)
- Dubai Investments Park (+38%)
Future Residential Supply (2024-2027)
Dubai has 243,000 residential units slated for completion by the end of 2027, with apartments making up 80% of the pipeline.
Key areas with over 2,000 upcoming units include:
- Palm Jumeirah
- Dubai Hills
- Dubai Marina
- Jumeirah Village Circle
- Jumeirah Village Triangle
- Al Furjan
- Dubai Silicon Oasis
- Town Square
- Studio City
