Dubai’s residential resale market continued its impressive performance in 2024, demonstrating resilience and strong growth across various segments, according to a new report by Metropolitan Premium Properties, a division of the Metropolitan Group.
The report reveals total transaction value increased by 25.3% to over Dhs 155.72 billion, driven by a robust economy and sustained population growth. Despite global economic uncertainties, Dubai’s resilient real estate market remains attractive to both domestic and international investors.
Dubai real estate market
“Dubai’s real estate market has once again outperformed expectations and 2024 was no exception,” said Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties. “The data clearly shows a dynamic and evolving market with strong demand for ready-to-move-in properties. This shift towards secondary sales reflects the increasing preference for immediate occupancy and the desire to capitalize on the current market conditions.”
Key highlights from report
- Total transaction volume: The market recorded 58,328 resale transactions in 2024, representing a 19.3% increase compared to 2023.
- Total resale value: The total value of all residential resale transactions reached Dhs 155.729 billion, a 25.3% increase versus the previous year.
- Average price growth: The average resale price per square foot increased by nearly 8%, rising to Dhs 1,548 across all property types, reflecting strong demand and limited supply.
- Demand for ready properties: Secondary sales accounted for 83% of all transactions by value and 82% of all transactions in 2024. The preference for ready-to-move-in properties is driven by higher rental costs and the absence of interest rate increases, encouraging more residents to shift from renting to purchasing their homes.
- Apartments continue to lead: Apartments accounted for 77.69% of all resale transactions, townhouses made up 14.67% and villas accounted for 7.62%.
Most expensive transactions
- Most expensive villa: A luxury 6-bedroom villa in Jumierah Bay Island was sold for Dhs 240.5 million.
- Apartment: 5-bedroom apartment at The One on Palm Jumeirah fetched Dhs 275 million, a 5-bedroom apartment at the Bulgari Lighthouse for Dhs 137 million and a 5-bedroom apartment at The Crescent, Six Senses The Palm for Dhs 130 million.
- Most expensive townhouse: A townhouse in Umm Suqeim 2 sold for Dhs 72 million and another for Dhs 35.6 million and a 5-bedroom townhouse in Tilal Al Ghaf sold for Dhs 34 million.
Ms. Vasilieva added: “For 2025, we project a sustained period of growth and stability in Dubai’s resale sector. Investor confidence remains high, bolstered by the city’s strong economic fundamentals and world-class infrastructure. This, coupled with attractive financing options, will continue to fuel transaction activity.”
Property-type highlights from the report
Apartments
- Average resale price: The average resale price per square foot for apartments increased by 5.3%, reaching Dhs 1,576 compared to 2023.
- Resale transactions: A total of 45,320 resale transactions were recorded, reflecting a 22.4% increase compared to 2023. The total value of these transactions reached Dhs 81.17 billion, up 24.1% year-over-year.
- Resale market transactions: 81% of resale transactions were secondary sales while off-plan resale accounted for 19% of the transactions.
- Resale market value: A total of 76% (Dhs 61.77 billion) of the resale value was attributed to secondary sales, while 24% was linked to off-plan resales.
- Apartment rentals: The average price per square foot for apartment rental increased 17.3% to AED 77 compared to 2023. There was a total of 477,424 transactions, a nearly 2% increase from last year, with renewals making up 61% while new leases accounting for 39%.
Villas
- Average resale price: The average resale price per square foot for villas surged to nearly 21%, reaching Dhs 1,937 compared to 2023.
- Resale transactions: While the number of resale transactions dipped slightly by 2.6% to 4,449, the total value of these transactions soared by 22.1%, reaching Dhs 48.89 billion.
- Resale market breakdown:
- Secondary resales: The vast majority (97%) of resale transactions were secondary sales, accounting for Dhs 48.16 billion of the total value.
- Off-plan resales: A small 3% of resale transactions were off-plan, contributing to Dhs 722 million of the total value.
- Villa rentals: The average price per square foot for villa rentals increased by 23%, reaching Dhs 70 compared to 2023. There was a total of 35,085 transactions with renewals accounting for over 61%.
Townhouses
- Average resale price: The average resale price per square foot for townhouses surged 17.3%, reaching Dhs 1,212 compared to 2023.
- Resale transactions: While the number of resale transactions increased 17.4%, totalling 8,559, while the total value of these transactions soared 36.6% to Dhs 25.66 billion.
- Resale market breakdown:
- Secondary resale: 76% of resale transactions were secondary sales, accounting for 78% (Dhs 19.89 billion) of the total value.
- Off-plan resale: 24% of resale transactions were off-plan, contributing to 22% (Dhs 5.76 billion) of the total value.
- Townhouse rentals: The average price per square foot for townhouse rental rose 15.8% to Dhs 68. There was a total of 21,562 rental transactions, a 2.5% increase from last year, accounting for Dhs 3.41 billion, which reflects a 16.5% increase.
tanvir@dubainewsweek.com
