The Dubai real estate market has achieved an extraordinary milestone, with total sales reaching approximately $38.7 billion (AED 141.9 billion) in the third quarter of 2024. This figure not only marks the highest quarterly sales ever recorded in the region but also signifies a remarkable 30.1% increase in value year-on-year. Surpassing the previous record of $33.8 billion set just months prior, these figures underscore the ongoing vitality and attractiveness of Dubai’s real estate sector, both locally and internationally.
Unprecedented Sales Activity
According to a market update from fäm Properties, a staggering 50,423 sales transactions were completed in Q3 2024. This represents a substantial 37.9% year-on-year increase in volume and a 16.6% rise compared to the previous quarter. Such robust activity highlights the continuous demand for real estate in Dubai, fueled by both local and global investors eager to capitalize on the emirate’s dynamic property market.
Apartments Lead from the Front
Dominating the market, the apartment segment accounted for 39,058 sales transactions valued at around $19.2 billion (AED 70.5 billion), making up 77% of total transactions in Q3. This segment experienced an impressive 43.9% increase in volume compared to the same period last year. Villas also played a significant role, with 8,156 units sold for approximately $10.7 billion (AED 39.2 billion), marking a 16.6% year-on-year increase.
The land plot market saw robust performance as well, with 2,102 transactions valued at around $8.1 billion (AED 29.9 billion), reflecting a 45.9% increase in volume year-on-year. The commercial sector recorded 1,112 sales transactions valued at approximately $626 million (AED 2.3 billion), indicating a 12.1% increase compared to Q3 2023.
Firas Al Msaddi, CEO of fäm Properties, remarked, “These figures emphasize the resilience of the Dubai real estate market and the consistent growth we've observed in recent years, which enhances investor confidence. This ongoing upward trend reinforces Dubai’s status as a leading destination for real estate investment.”
Key Performing Areas
During Q3 2024, several areas in Dubai attracted notable investor interest. The top five performing locations included:
- Jumeirah Village Circle: 4,467 transactions worth approximately $1.45 billion (AED 5.33 billion).
- Dubai South: 2,910 transactions valued at $2.25 billion (AED 8.25 billion).
- Business Bay: 1,073 transactions totaling $1.96 billion (AED 7.22 billion).
- Wadi Al Safa 5: 1,260 transactions worth $1.44 billion (AED 5.3 billion).
- Dubai Hills Estate: 1,051 transactions valued at $2.01 billion (AED 7.38 billion).
Notably, the luxury segment made headlines with the sale of a luxury apartment at Palm Jumeirah for an astounding $75 million (AED 275 million). The data also revealed that properties priced between $272,000 and $544,000 (AED 1-2 million) accounted for 31% of total sales, indicating a diverse range of options for buyers.
Market Trends and Future Outlook
The report highlighted a significant rise in property values, with the median price per square foot reaching $411 (AED 1,511), up from $276 (AED 1,017) in Q3 2021. Over the past five years, Dubai’s Q3 property sales have surged from $4.9 billion (AED 18.1 billion) in 2020 to the current peak of $38.7 billion, underscoring the remarkable trajectory of the market.
Looking ahead, the data suggests a vibrant and expanding real estate market in Dubai, with strong prospects for continued growth and investment opportunities. The shift towards new developments, which accounted for 68% of transactions in volume, further emphasizes the evolution of the market.
The record-breaking sales figures of $38.7 billion in Q3 2024 highlight the resilience and allure of the Dubai real estate market. With strong demand, increasing property values, and significant investments in new developments, Dubai continues to solidify its position as a premier destination for real estate investment. As stakeholders anticipate further growth and diversification in this dynamic sector, it’s essential to stay informed about the latest trends and opportunities. For those looking to navigate this thriving market, ReDubai offers valuable insights and resources to help investors make informed decisions and maximize their investments in Dubai real estate.
