Dubai property prices soar by 27% year-on-year

Dubai's real estate market has closed 2024 on a record-breaking note, reaching an unprecedented 180,900 transactions worth AED 522.1 billion, according to a market report issued by fäm Properties.

This milestone represents a remarkable 36% increase in transaction volume and a 27% rise in value compared to the previous high of 133,100 transactions worth AED 411.1 billion in 2023.

The primary market saw significant activity, with first sales from developers climbing 30% year-on-year to AED 334.1 billion. Transaction volume surged 51% to 119,800, reflecting strong buyer confidence in new developments and off-plan properties. 

Average prices per square foot in this segment increased by 10%, reaching AED 1,600, driven by demand for newly launched projects and attractive payment plans.

Foreign investors played a crucial role in fueling demand, supported by residency incentives and visa reforms. Developers capitalized on this by launching projects in popular areas and offering flexible financial terms.

The secondary market also performed strongly, with re-sales climbing 21% year-on-year to AED 188.1 billion. 

Transaction volumes rose 14% to 61,100, reflecting sustained interest in ready-to-move properties. The average price per square foot increased by 12% to AED 1,300, highlighting a healthy appreciation in value.

This segment's growth was driven by high rental yields, a shift towards ready properties for immediate occupancy, and ongoing infrastructure improvements enhancing property attractiveness.

Key Sector Highlights

• Apartment Sales: Led the market with a 42% year-on-year increase in transaction volume, achieving 141,168 sales worth AED 260.6 billion.
• Villa Sales: Increased by 21.1% to 30,938 units worth AED 164.1 billion, reflecting sustained interest in luxury living.
• Commercial Properties: Recorded a 10.1% growth in volume to 4,304 units worth AED 9.7 billion.
• Plots: Sales grew by 2.6%, with 4,352 transactions worth AED 86.5 billion.