Are you interested in Dubai real estate but uncertain about the market’s current condition? The Dubai property market has exhibited amazing strength in the first half of 2024. There occurred a significant 17.8 % increase in the variety of transactions as compared to the preceding year. With 27,949 transactions and a total value of AED76.34 billion, the market is developing at a superb rate. What is behind this surge, and what does it mean for potential buyers and investors?

This article breaks down the key facts and figures about the Dubai real estate market in H1 2024. 

Dubai Real Estate Market Sees 17.8% Growth in Transactions in H1 2024

Record-Breaking Transaction Growth

The Dubai real estate market has witnessed a sharp increase in activity in 2024, particularly in the residential resale segment. According to a market review report for H1 2024, transactions increased by 17.8%, reaching a total of 27,949 compared to the previous year. This growth highlights the strong demand for residential properties in Dubai. The total value of transactions also soared by 23.1%, amounting to AED76.34 billion. 

This significant rise indicates that buyers are not only purchasing more properties but are also spending more per transaction. The average residential resale price per square foot jumped to AED1,545, marking a nearly 7% increase from the previous year. Despite challenges, including an unexpected flooding event in April, Dubai’s property market rebounded quickly. In May 2024, the city saw a record-breaking 17,139 resale transactions, the highest monthly total ever recorded. This remarkable recovery highlights the resilience of the Dubai real estate market and its capacity to bounce back from difficulties.

Strong Demand For Apartments In H1 2024

In the first half of 2024, apartment sales led the residential resale market in Dubai. Apartments accounted for 77% of all resale transactions, demonstrating their continued popularity among buyers. A total of 21,578 apartment units were sold, marking a 20% increase from the previous year. The total value of these transactions reached AED39.99 billion.

Dubai’s real estate market has seen steady growth in apartment prices, with resale prices per square foot increasing by nearly 7%. Apartments remain a favored option for many buyers due to their affordability, convenience, and attractive locations. Several areas in Dubai were in high demand for apartment sales. Jumeirah Village Circle (JVC), Dubai Marina, and Business Bay emerged as the most searched areas for apartments. These locations offer excellent amenities, proximity to key landmarks, and a range of property options, making them attractive to both investors and end-users.

Also Read: How to Navigate Home Buying with Ease: a step-by-step guide for First-time buyers

Surging Demand For Villas And Townhouses

Along with the rise in apartment sales, the demand for villas and townhouses in Dubai has also surged. In H1 2024, villa resale values jumped by 22.6%, with a total of 2,378 transactions amounting to AED24.60 billion. The increasing interest in villas reflects buyers’ preference for larger properties with outdoor spaces, especially post-pandemic. Townhouse sales saw an even larger growth, with a 37.4% rise in transaction values. 

A total of 3,993 townhouses were sold in H1 2024, with their total value amounting to AED11.74 billion. The growing appeal of townhouses can be attributed to their affordability and the community-style living they offer. Several areas in Dubai were particularly sought after for villa and townhouse sales. Al Furjan, Arabian Ranches 3, and DAMAC Hills 2 were the top searched areas for these property types. These areas offer spacious homes with excellent amenities, making them attractive options for families and investors.

Top Sales In Dubai’s Luxury Property Market

Dubai’s luxury real estate market also saw significant activity in the first half of 2024. Several high-end properties were sold for impressive sums, showcasing the continued demand for luxury living in the city. The top apartment sale in H1 2024 was a 4-bedroom unit in Downtown Dubai’s Kempinski Boulevard, which sold for AED80,000,000. This was followed by a 4-bedroom apartment in The Four Seasons at Dubai Water Canal, which was sold for AED72,000,000. 

Another significant sale was a 6-bedroom apartment in The 118, Downtown Dubai, which sold for AED65,000,000. In the villa segment, the top sale was a property on Jumeirah Bay Island, which sold for a staggering AED240,500,000. Two other villas on Jumeirah Bay Island were also sold for AED160,000,000 and AED155,000,000, respectively. For townhouses, the highest sale was a property in Umm Suqeim 2, which sold for AED34,000,000. 

Other notable sales included a townhouse on Jumeirah Bay Island, Villa Almalfi, which sold for AED31,000,000, and a townhouse in JVC District 16, which sold for AED25,000,000. These high-value transactions reflect the growing interest in Dubai’s luxury property market and the city’s appeal to high-net-worth individuals looking for premium real estate options.

Factors Driving The Growth Of Dubai’s Real Estate Market

Several factors have contributed to the strong performance of the Dubai real estate market in the first half of 2024. One of the key drivers has been the city’s ongoing efforts to attract foreign investment. Dubai’s status as a global hub for business, tourism, and real estate has made it a magnet for international investors. Infrastructure development has also played a significant role in boosting the market. 

The city continues to invest in new roads, public transportation, and community amenities, making it an attractive place to live and invest. Additionally, Dubai’s reputation for safety and security has drawn buyers from around the world looking for a stable and secure real estate market. Another factor driving the market’s growth is the city’s efforts to attract talent and businesses. Dubai’s government has introduced various incentives to encourage foreign companies to set up operations in the city. This has led to an influx of expatriates looking for housing, further boosting demand for residential properties.

Arshad Darbar’s Thoughts

Arshad Darbar, a seasoned real estate expert, views the recent 17.8% growth in Dubai’s property transactions for H1 2024 as a clear indicator of the market’s robust health. According to Darbar, this significant growth reflects Dubai’s enduring appeal to both local and international buyers. He highlights that despite challenges such as the recent floods, the market’s swift recovery and record-breaking sales in May underscore its resilience and attractiveness. Darbar points out that the growth in transaction values, which rose by 23.1% to AED76.34 billion, indicates growing investor confidence and a strong demand for both residential and luxury properties. 

He notes that the surge in apartment sales and the rising values of villas and townhouses demonstrate a diverse interest in Dubai’s real estate sector. Looking ahead, Darbar remains optimistic about the market’s future, attributing the growth to Dubai’s strategic location, ongoing infrastructure projects, and favorable investment conditions. He believes that these factors will continue to drive demand and investment in Dubai’s real estate market.

Conclusion

The Dubai real estate market has seen strong growth in H1 2024, with a 17.8% increase in transactions and a 23.1% rise in transaction values. The market’s resilience, coupled with increasing foreign investment and infrastructure development, has positioned Dubai as a top destination for real estate buyers and investors. As we move into the second half of 2024, the market is expected to continue growing, with key areas such as Dubai South and Dubailand poised for further development. For buyers and investors, the Dubai real estate market offers a range of opportunities, from affordable apartments to luxury villas and townhouses.