03 January 2025

Dubai Residential Real Estate Market in 2024: Summary and Forecasts for 2025

Table of content

Reflecting on a Record-Breaking Year and Looking Ahead

Dubai’s residential real estate market continues to amaze: 2024 saw around 170,000 transactions, a 30% increase compared to the previous year. This growth is fueled by both domestic demand and the activity of foreign investors. Russians consistently rank among the top five buyers, thanks to the absence of geopolitical restrictions.

Want to know which areas and properties will be the most promising in 2025? Submit a request for a free consultation with SPI Dubai.

Key Highlights of 2024

  1. Record Price Growth
    The average property value increased by 20% year-on-year. The off-plan sector saw a particularly significant boost, with transactions up 46% compared to the previous year.
  2. Sales Dynamics by Property Type
    • Apartments: 80% of transactions.
    • Villas and townhouses: 20% of transactions.
      Residences with 1–2 bedrooms were the most sought-after, accounting for 82% of inquiries.
  3. Popular Areas
    Leading neighborhoods included:

    • Downtown Dubai
    • Palm Jumeirah
    • Dubai Marina
    • JVC

Not sure which area is best for your investment? Our experts can help you find the perfect option. Submit a request today!

Trends in 2024

  1. Sustainability and Green Development
    Projects certified by LEED and featuring energy-efficient technologies have become the standard. Dubai is now among the top three cities globally in terms of the number of such properties.
  2. Technology Integration
    The number of “smart homes” grew by 12%, as buyers increasingly prioritize automation, energy efficiency, and comfort.
  3. Luxury Demand
    High-end villas and residences priced above $2.7 million continue to attract wealthy investors.

SPI Dubai’s 2025 Forecasts

  1. Price Growth Will Slow
    After a 15–20% surge in 2024, prices are expected to stabilize with a 5–8% increase. However, luxury villas and penthouses may see growth of 8–10%.
  2. High Rental Demand Will Persist
    Rental properties could yield returns of up to 10% annually, with contract values rising by 10–12% in popular areas like Jumeirah Islands and Dubai Hills Estate.
  3. Increased Supply
    About 182,000 new units, including apartments and villas, are expected to be delivered in 2025.
  4. Population Growth and Investment Opportunities
    • Dubai’s population is projected to reach 4 million by 2026.
    • The “D33” programs aim to boost real estate transactions to $272 billion by 2030.

Conclusion

Dubai’s real estate market continues to grow, supported by strategic government policies, increasing investor interest, and global attention on the emirate. Stable rental income, price growth, and the launch of new projects make this market ideal for long-term investments.

SPI Dubai is here to help you select the best investment properties.

👉 Submit your request for a professional consultation and start investing with confidence!