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Dubai's real estate market continues to attract global attention, not only for its iconic skyline, but more importantly for its remarkable resilience and continued growth. This sector shows an exceptionally robust trajectory, driven by an interplay of demographic shifts, strategic government initiatives and unshakable investor confidence. In this article, we unravel Dubai's unprecedented market performance in 2024 and early 2025, and present the crucial numbers you need to know as an investor.
Unprecedented growth: the figures of Dubai's real estate market
The period of 2024 and the first half of 2025 is downright historic for Dubai's real estate market. The market has consistently delivered record-breaking transaction volumes and values in both the residential and commercial segments.
In 2024, Dubai recorded an impressive 180,900 real estate transactions, with a total value of AED 522.1 billion. This represented a significant 36% increase in transaction volume and a 27% increase in sales value over the previous year.
This strong momentum continued into 2025. The second quarter of 2025 counted 53,252 property sales transactions, a 22% increase in volume year-on-year and a 49% increase in value, to AED 184.3 billion. These figures confirm exceptional liquidity and deep-seated confidence in the market.
Residential highlights: apartments, villas and luxury
The residential market is the absolute driver of this growth. The number of residential unit transactions in 2024 increased 39% over 2023, with total sales of nearly AED 434 billion, up 33%. Average residential prices in Q4 2024 rose nearly 18% year-on-year. By May 2025, total property prices were even up 25% since May of the previous year.
Let's take a closer look at the performance of specific housing types:
- Apartments: prices rose around 24% year-on-year through November 2024 (ValuStrat). This trend continued into 2025, indicating broad and sustained demand for urban housing.
- Villas: prices rose around 32% year-on-year through November 2024 (ValuStrat). Detached villas are now valued on average more than 65% above their previous peak in 2014. This illustrates the increasing preference for more spacious homes and family-friendly neighborhoods.
- Luxury segment: sales of homes above $10 million reached a record high of $2.6 billion in Q2 2025, up 63% from Q2 2024. This confirms a robust and sustained demand for luxury real estate. Iconic locations such as Palm Jumeirah, La Mer and Downtown Dubai were the absolute leaders in these transactions.
Rental market dynamics: attractive yields and strong demand
The rental market also performed strongly, reflecting the solid underlying demand for housing in Dubai.
- Residential rents increased 21.1% through May 2024 (CBRE).
- By the end of 2024, the increase was around 16%.
These developments translate directly into attractive returns for investors:
- Dubai's real estate market offers competitive rental yields, averaging 6.3% by 2025.
- Studio apartments appear to be the most lucrative investment in terms of returns, averaging over 8%.
Activity in primary and secondary market: broad confidence
Market activity is not limited to one segment; both the off-plan (primary) and off-the-shelf (secondary) markets have shown strong momentum:
- Sales by developers in the primary market (off-plan) increased 30% year-on-year by 2024, to a value of AED 334 billion. This illustrates investors' confidence in future developments and willingness to get in early.
- The secondary market (resale of existing properties) also saw healthy activity, rising 21%, to a total of AED 188 billion by 2024.
This bipartisan demand indicates broad and deep-seated confidence in Dubai's real estate future. It suggests that growth is not based on speculation in a single segment, but on fundamental and widespread demand throughout the market.
Conclusion: a booming market in full swing
Dubai's real estate market presents itself as vibrant evidence of economic dynamism and strategic planning. Record-breaking transaction volumes and values, combined with strong price increases and attractive returns on investment (ROI) in both the apartment and villa segments, paint a picture of a market in full bloom.
The robust performance of both the primary and secondary markets underscores a deep-seated investor confidence, fueled by Dubai's fundamental appeal as a global hub for living and business.
Discover the potential of Dubai's real estate market
Want to further explore current trends and figures, and learn how to take full advantage of these dynamic market conditions?
Contact our real estate consultants for a personal consultation. We will be happy to provide you with the latest insights and advise you on strategic investment opportunities.
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