Dubai’s residential Real Estate market surged in the first half of the year, according to Engel & Völkers Middle East
Dubai’s real estate market witnessed 77,233 transactions in the residential property segment during the first half of this year, as reported by Engel & Völkers Middle East. This marks a significant 33.5 percent year-on-year increase, with the total sales value reaching AED227bn ($62bn), reflecting a 31 percent rise compared to H1 2023.
This growth highlights the strong demand and investor confidence in Dubai’s real estate market.
Dubai Real Estate H1 Sales
The off-plan market accounted for more than 60 percent of all transactions, showcasing the robust interest in new developments driven by their availability, competitive pricing, flexible payment plans, and high return potential. Popular communities included Jumeirah Village Circle, Dubai South, and Damac Hills 2, known for their affordability, modern amenities, and strategic locations.
During this period, apartments led the growth, contributing to 91 percent of the increase in transactions. The affordability, availability, and typically higher returns of apartments spurred significant demand, with apartment sales making up more than 80 percent of all transactions and increasing by 41 percent year-on-year. The total transacted value rose by 33 percent. Jumeirah Village Circle (JVC) remained the top community for off-plan and secondary transactions, driven by affordable prices, a steady supply of new projects, and attractive potential returns for investors. Business Bay, a key commercial hub, also remained in high demand, underscoring its significance in the market.
Although the villa segment remains relatively small, it experienced substantial growth in H1 2024, with transactions increasing by 52 percent year-on-year and total sales value rising by 66 percent. This surge reflects strong demand from families seeking spacious homes and discerning buyers looking for prime properties. New communities like The Acres, Dubai South, and Haven drove growth in off-plan villa sales due to desirable locations, lifestyle amenities, and investment potential. Meanwhile, secondary market volumes increased due to recently handed-over properties in communities like Damac Hills 2 and Tilal Al Ghaf, which attracted significant buyer interest.
The market’s resilience was particularly evident following the April floods, with May surpassing the previous monthly transaction record by a remarkable 20 percent.
Key infrastructure projects, including the recently announced $8bn drainage system, the $35bn Al Maktoum Airport expansion, and the $5bn Dubai Metro Blue Line, demonstrate Dubai’s commitment to sustained growth and development.
Dubai’s luxury real estate segment continues to thrive, with a 47 percent year-on-year transaction increase. In 2024, the UAE will become the largest recipient of millionaires globally, fueling demand for opulent villas and branded residences. This segment is poised for another exceptional year. The iconic Palm Jumeirah remains Dubai’s leading luxury community, consistently attracting high-value transactions. Mohammed Bin Rashid City and Dubai Hills Estate closely followed and are known for their family-friendly environments, great amenities, and stunning contemporary villas. Emerging communities like Dubai Islands and Palm Jebel Ali are also popular among affluent buyers, diversifying options in Dubai’s high-end real estate market.
Daniel Hadi, CEO at Engel & Völkers Middle East, said: “The first half of 2024 has been extraordinary for Dubai’s residential real estate market. The unprecedented growth in sales transactions and value is a testament to Dubai’s resilience, strategic infrastructure investments, and its appeal to global investors. As we look ahead, we are optimistic about the sustained growth and transformation of this dynamic market.”
With the city’s population increasing by more than 100,000 annually, and an economy projected to expand by 4 percent in 2024, the outlook for the real estate market remains highly positive.