Engel & Völkers Middle East Releases Q3 2024 Dubai Real Estate Market Report: AED 138.8 B In Combined Sales, Residential Transactions Surge By 40.8%, Commercial Market Achieves AED 23.2 B In Sales
Engel &Völkers Middle East, known for its residential and commercial real estate services in the premium segment, has released its Q3 2024 Dubai Real Estate Market Report, showcasing a robust performance across both residential and commercial sectors. Dubai’s real estate market continues to attract global interest, with combined residential and commercial sales reaching AED 138.8 billion for the quarter. Residential transactions surged by 40.8% year-on-year, contributing AED 115.6 billion, while the commercial market added AED 23.2 billion in sales, reflecting a 28% increase in total transaction value compared to the same period in 2023.
Dubai’s thriving real estate market is buoyed by strong economic fundamentals, rising foreign investment, and the emirate’s appeal as a destination for high-net-worth individuals and businesses. This momentum is set against a backdrop of the UAE’s projected economic growth of 3.9% for 2024, accelerating to 6.2% in 2025, driven by key sectors such as tourism, real estate, and international trade.
“Dubai’s real estate market continues to demonstrate its resilience and appeal to a global audience, as both residential and commercial sectors are experiencing significant growth. The city’s strategic vision, business-friendly environment, and world-class infrastructure continue to attract investors from around the world,” said Daniel Hadi, CEO of Engel &Völkers Middle East. “With demand for premium properties at an all-time high, and the government’s economic diversification initiatives bolstering growth in key sectors, we anticipate continued upward momentum across all real estate segments.”
Residential Market: Off-Plan Demand Leads the Way
Dubai’s residential sector posted strong results in Q3, with total transaction volumes increasing by 40.8% year-on-year, reaching AED 115.6 billion. Off-plan properties accounted for over 65% of total transactions, driven by the launch of new projects and growing investor interest. In Q3 alone, more than 30,000 off-plan units were sold, marking a 62.5% increase from the same period last year. Communities like Jumeirah Village Circle, Dubai Hills Estate, and Business Bay led the way, while new developments in areas like Dubai Creek Harbour and Sobha Hartland II also attracted significant attention.
In the secondary market, transaction volumes rose by 12.8%, reflecting the sustained demand for ready-to-move-in properties. Key communities such as Jumeirah Village Circle, Dubai Marina, and Business Bay experienced strong apartment sales, while villa and townhouse sales surged in Emirates Living, Al Furjan, and Mohammed Bin Rashid City, despite price increases exceeding 15% in many areas.
Luxury Market: Record-Breaking Year in Sight
Despite a modest 6% decline in transactions over AED 10 million compared to Q3 2023, Dubai’s luxury real estate market remains on track for a record-breaking year. The Palm Jumeirah, Dubai’s iconic high-end community, recorded 110 transactions over AED 10 million, including three exceeding AED 200 million. Among these was the sale of a penthouse for AED 275 million, showcasing the sustained appetite for ultra-luxury properties.
Other established luxury communities like Mohammed Bin Rashid City and Dubai Hills Estate continued to see strong demand, while emerging areas such as The Oasis and Palm Jebel Ali highlighted the broadening appeal of Dubai’s luxury market, attracting high-net-worth individuals seeking exclusive properties in the city.
Commercial Market: Strong Demand for Office and Retail Spaces
The commercial real estate sector posted impressive growth in Q3, with AED 23.2 billion in sales, a 28% year-on-year increase in transaction value. Office sales rose by 12.6%, while retail transactions surged by 16.8%, signaling strong demand for premium commercial properties. Prime districts such as Business Bay and Jumeirah Lakes Towers (JLT) remained the top choices for office spaces, underscoring Dubai’s appeal as a global business hub.
Despite a slight 6.5% decline in overall commercial sales volumes, the value of transactions has surged, driven by rising prices for high-quality assets. Additionally, the leasing market witnessed upward trends in rents, with office and retail rents growing by 4% and warehouse rents jumping by 19%, reflecting strong demand in the industrial sector.
Leasing Market: Demand Remains Resilient Amid Rising Prices
The leasing market across Dubai remains buoyant, supported by the city’s growing population. Communities like Jumeirah Village Circle, Dubai Silicon Oasis, and Dubai Marina lead rental transactions. Despite the increasing number of tenants opting to buy or renew their contracts, rental prices continue to rise due to sustained demand, with many areas witnessing double-digit increases in average rents.
Outlook: A Promising Future for Dubai Real Estate
As the UAE economy is projected to grow by 3.9% in 2024 and accelerate to 6.2% in 2025, Dubai’s real estate market is well-positioned for continued expansion. Government initiatives to diversify the economy, particularly in key sectors such as technology, healthcare, and green energy, are expected to further drive demand across both residential and commercial markets.
