Dubai’s residential real estate market continues its upward trend with a 20% year-on-year increase in sales prices and an 18% rise in rental prices, marking the 17th consecutive quarter of growth. However, signs of price stabilization are emerging especially in the prime market as supply gradually increases.
In Q3 2024, around 9,157 residential units were delivered bringing the year-to-date total to 22,900 with an additional 10,700 units expected in Q4. While the supply for 2024 remains moderate, the development pipeline is set to increase over the next two to three years, potentially stabilizing the market.
The off-plan market remains dominant with off-plan transactions up 51% compared to Q3 2023 while the secondary market saw a more modest 19% increase. Off-plan properties are appealing due to attractive payment plans and property-linked visas.
While city-wide sales prices continue to rise with villas up 23% and apartments up 19%, prime districts like Palm Jumeirah and Dubai Marina are showing signs of price growth stabilizing. In contrast, mid-market areas like Discovery Gardens and Dubai Sports City are experiencing strong double-digit growth.
Source: Dubizzle
Rental prices have increased by 18% with apartment rents up 19% and villa rents up 13%. However, rents in prime areas have moderated while more affordable areas are seeing higher growth. Tenant renewals are also rising with a 16% increase in Q3 2024.
In the ultra-prime market, sales of properties above AED 20 million surged 41% with Palm Jumeirah leading in high-end transactions. Despite the growing supply, demand for luxury properties remains strong, driven by ultra-high-net-worth individuals (UHNWIs) seeking waterfront and branded residences.