Dubai’s residential real estate market has once again broken records, with total sales surpassing Dh50 billion for the first time, according to data released on Thursday.
Engel & Völkers Middle East's latest report revealed that sales transactions surged to 19,605, marking an 80 percent increase year on year. The off-plan segment led the charge, soaring by 117 percent year on year, while the secondary market saw a robust 33 percent rise in sales due to constrained supply.
“This remarkable performance underscores Dubai’s unwavering resilience and appeal as a top global real estate market,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “The city continues to attract high-net-worth investors and global businesses looking for stability and growth opportunities.”
Despite a 1.7 percent increase in average property prices, Dubai remains an attractive investment destination, offering a highly competitive average rental yield of 6.9 percent. This resilience is particularly notable given the global geopolitical challenges, further cementing Dubai’s status as a robust and sought-after real estate hub.
Engel & Völkers highlighted Dubai’s real estate market as a beacon of luxury, innovation, and unparalleled living. Their report also listed Dubai’s top five most exclusive residential areas, known for their prestige, unique features, and high-end lifestyle offerings. These include Palm Jumeirah, Dubai Marina, Downtown Dubai, Dubai Hills Estate, and Emirates Living.
1. Palm Jumeirah: Known for its luxury living, this man-made island features exclusive villas, marinas, and high-end shopping. It often tops the list for property sales over Dh10 million, with beachfront villas averaging Dh37 million.
2. Dubai Marina: A modern hub with world-class dining and vibrant nightlife, Dubai Marina attracts young professionals and families. Its iconic canal and premium waterfront properties make it a popular choice among discerning buyers.
3. Downtown Dubai: Home to the Burj Khalifa, Dubai Mall, and Dubai Opera, Downtown Dubai offers unparalleled urban luxury. Its high-end apartments are coveted by affluent individuals seeking the pinnacle of city living.
4. Dubai Hills Estate: A blend of nature and luxury, this area is favored by families and professionals who appreciate a suburban atmosphere with ample green spaces. Its prestigious golf course and expansive parks create a unique living environment.
5. Emirates Living: Comprising communities like The Springs, The Lakes, The Meadows, and the exclusive Emirates Hills, this area is ideal for families seeking peace and proximity to top-tier schools. Its serene lakes and lush green spaces offer an unmatched suburban experience.
While there was a slight dip in residential sales and rental transaction volumes, Dubai’s commercial real estate sector demonstrated robust underlying demand. Commercial sales reached a record Dh10.9 billion, marking a 10 percent increase from 2023. This growth was driven by rising transaction values and sustained interest in premium commercial spaces.
The office market saw a 24 percent year-on-year surge in sales, with the average office price climbing to Dh1,503 per sq. ft., a 37 percent increase over the previous year. Office rental prices also grew significantly, up 25.8 percent year on year, while retail rents rose by 6.9 percent compared to 2023.
As Dubai continues to experience robust economic expansion and an influx of businesses relocating or expanding within the city, Engel & Völkers Commercial anticipates a strong finish to 2024 and a promising outlook for 2025.
Source link: https://www.khaleejtimes.com
