Dubai’s real estate market experienced a historic year in 2024, with soaring demand driving record-breaking growth in both residential and office sectors. According to Cushman & Wakefield Core’s Annual Report, prices, rents, and transactions surged despite limited supply.
Residential Supply Shortfall: Only 30,200 units were handed over in 2024, 30% lower than in 2023, fueling price hikes.
Rising Rents & Prices: Citywide rents increased by 16%, while sales prices jumped 18% year-on-year.
Office Sector Boom: Dubai's office occupancy hit 92% in 2024 and is expected to surpass 94% by 2025. Office rents soared 22%, with another 10-12% increase forecasted.
Luxury Surge: Ultra-prime properties saw record sales, fueled by a global influx of millionaires. New waterfront developments provide investment opportunities but face comparisons to Palm Jumeirah’s long-term value.
Off-Plan Dominance: Off-plan transactions now double those in the secondary market, shifting Dubai’s property landscape toward investors.
Source: Freepik
More Residential Units: A 41% increase in handovers, with 42,000+ units expected, offering some market relief.
Steady Price Growth: Rent and sales price increases will likely moderate to under 10% as new supply enters.
Office Space Crunch Continues: Double the new office supply is coming in 2025 (1.66M sq. ft.), but the market remains tight until at least 2027-2028.
New Mortgage Rules: From February 2025, a 6% additional down payment for mortgage buyers may slow mid-market transactions but is expected to have minimal overall impact.
Expansion of Freehold Areas: Sheikh Zayed Road and Al Jaddaf now offer freehold ownership, a move expected to increase asset values and reshape the owner-occupier mix.
With regulatory updates, increased supply, and growing investor confidence, Dubai’s real estate market remains a powerhouse, balancing strong demand with evolving opportunities.