Dubai Property Market Reaches $142.3B, Set for Further Growth in 2025

The real estate market in the United Arab Emirates (UAE) is experiencing rapid growth, as highlighted by Property Finder. The market achieved record-breaking transaction volumes and values in 2024, driven by strong demand for off-plan projects in Dubai and steady growth in Abu Dhabi’s property sales.

Dubai led this remarkable growth, recording 180,987 property transactions worth $142.3 billion in 2024. This marked a 36.5% rise in transaction volume and a 27.2% increase in value compared to the previous year. Off-plan sales played a significant role, accounting for 60.5% of total transactions, a sharp rise from 43.6% in 2023. In total, 109,527 off-plan transactions were recorded, representing a 60.5% year-on-year increase, with a total value of $62 billion, reflecting 43.5% growth. This is the highest share of off-plan sales in a decade, showcasing strong investor confidence in Dubai’s future developments. Sales of existing properties also grew, with 71,460 transactions worth $80.2 billion, marking a 16.9% rise in value and a 10.9% increase in volume from 2023.

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Experts believe the market’s performance in 2024 was driven by economic diversification, foreign investments, and an influx of skilled professionals. Cherif Sleiman, Chief Revenue Officer at Property Finder, described 2024 as a defining year for UAE real estate, citing tools like Dubai’s Smart Rental Index, which have enhanced transparency and trust in the market. Mark Richards, CEO of The Network, emphasized that Dubai’s appeal continues to grow, with 50,000 to 60,000 new residents arriving annually. However, he noted a shortage in villas and townhouses, with only 5,000 of the 41,000 expected units in 2025 catering to this high-demand segment.

Abu Dhabi also experienced steady growth in its property market. The emirate recorded 14,662 transactions worth $13 billion, a 4% increase in volume. Residential properties dominated the market, making up 66% of transactions and 53% of the total value. Off-plan sales accounted for 55.5% of all transactions and were valued at $4.45 billion, representing 63.8% of total residential sales. Sales of existing properties also rose, with 4,320 transactions valued at $2.52 billion, showing significant year-on-year growth.

The market also witnessed evolving trends, with buyers and tenants demanding higher-quality properties. Developers have responded by focusing on better design and craftsmanship, reshaping the competitive landscape. Rising rents have fueled interest in affordable housing, and the off-plan and luxury segments continue to attract strong investor confidence. Abdullah Alajaji, Managing Director of Driven Properties, highlighted growing demand for affordable units and the sustained strength of luxury and off-plan markets heading into 2025.

Dubai’s property market reached new heights in the fourth quarter of 2024, marking its highest-ever quarterly sales and signaling a positive outlook for 2025. Increased demand in both residential and commercial segments pushed prices higher. Luxury properties, such as villas, penthouses, and beachfront developments, saw significant price increases, driven by high-net-worth individuals and international investors.

Mid-market housing also gained momentum, with developers focusing on affordable projects in areas like Dubai South and Dubai Creek Harbour. The UAE government has played a key role in this growth through investor-friendly policies, long-term visas, and tax breaks. Infrastructure projects like the Dubai Metro expansion have further boosted the market.

Looking ahead to 2025, analysts predict sustained growth in Dubai’s property market, driven by the city’s strategic location, economic diversification, and growing global appeal. While challenges such as rising construction costs and market saturation persist, developers are addressing these issues with innovative designs and sustainable practices. Dubai’s real estate sector remains a top choice for global investors, offering a balanced ecosystem of luxury and affordable housing.

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