Dubai’s real estate market saw a price surge of over 19% last year, with further increases expected in 2025.
According to the Dubai Residential Market Q4 2024 report by Knight Frank, residential property values grew by 19.1% in the past year, reaching AED 1,685 ($459) per square foot. This places current prices 13.3% above the 2014 peak.
Villa prices experienced an even stronger rise, increasing by 20.2% over the last 12 months to AED 2,009 ($547) per square foot—38.1% higher than the 2014 peak.
Dubai’s Real Estate Supply
Knight Frank attributes this steady growth to the popularity of stand-alone villas, beachfront properties, and branded residences offering seamless access to Dubai’s lifestyle.
Their 2024 Destination Dubai report highlights that international high-net-worth individuals (HNWIs) prioritize greenery, wellness centers, and waterfront locations when purchasing homes.
Faisal Durrani, Partner – Head of Research, MENA, noted: “Property values continue to rise steadily, with strong demand from both local and international buyers.
“Unlike previous cycles driven by speculative buying, this phase is seeing an increase in genuine end users.
“This shift is evident in the 30% reduction in available homes for sale across Dubai, with prime locations experiencing an even sharper 52% decline in listings.
“The global elite continues to focus on villas, which saw a 20.2% price increase last year—marking a staggering 99.8% rise compared to Q1 2020 levels.”
Knight Frank has revised its forecast for new residential units set for completion by 2029, with 302,880 homes currently under construction.
Of these, 80% are apartments, while villas account for 18% and branded residences make up 2%.
This equates to an average of 60,576 new homes per year over the next five years—significantly above the long-term annual completion rate of 36,000 homes.
However, with historical delays in delivery, Knight Frank notes that just over half of the 60,000 homes expected in 2024 were actually completed.
The number of available homes priced above $10 million fell by 40% over the past year, dropping from 4,119 to 2,491.
Meanwhile, properties in the $25 million+ category saw an even steeper decline of 85%, with listings falling from 583 to just 86.
Dubai’s prime residential sector, covering areas like Palm Jumeirah, Jumeirah Bay Island, Jumeirah Islands, and Emirates Hills, continues to thrive.
During Q4 2024, the average transacted price in these affluent neighborhoods rose to AED 6,627 ($1,805) per square foot—an increase of 16.9% compared to Q4 2023.
Petri Mannila, Partner – Prime Residential, Dubai, stated: “Dubai’s luxury property sector remains a top choice for international and local buyers, with a record-breaking year for $10 million+ homes.
“In 2024, there were 435 transactions in this segment, including 153 in Q4 alone—the highest quarterly figure on record.
“The 16.9% price growth over the past year reflects the sustained demand for high-end properties, coupled with a shrinking supply, pushing prices to AED 6,627 ($1,805) per square foot as of Q4 2024.”
