The Dubai real estate market has set a new benchmark in the second quarter of 2024, with off-plan property transactions reaching 25,466, amounting to over AED52 billion, according to a recent report. This represents an 81 percent increase compared to the same period last year, underscoring the market’s robust growth.
In the villa segment, there was a 44 percent Y-o-Y increase in transactions, with the value of these transactions rising by 76 percent. Off-plan apartments dominated the market, experiencing an 86 percent increase in transactions compared to the previous year.
Growing Appeal and Demand in Dubai Real Estate
This surge in the Dubai real estate market is attributed to the emirate’s increasing attractiveness, with each quarter surpassing previous transaction records. The market is increasingly oriented towards off-plan transactions as developers aim to meet growing demand through new project launches.
As the first emirate to allow property ownership for non-Emiratis, Dubai now boasts the highest future residential supply in designated freehold areas, with over 70 percent of new developments situated in these zones.
“The market sentiment is heavily skewed towards off-plan projects, driven by a notable shortage of ready-to-move-in inventory,” the report noted.
Luxury Off-Plan Segment Thrives
In 2024, developers in the Dubai real estate market launched over 200 residential projects, adding nearly 50,000 units to the off-plan market. The luxury off-plan segment, particularly for properties priced over AED15 million, remains strong, with Palm Jumeirah leading this market with 51 transactions, followed by Dubai Water Canal and Dubai Healthcare City II, with 28 and 18 transactions, respectively.
The top five areas for apartment and villa transactions in Q2 2024 were Jumeirah Village Circle, Mohammed Bin Rashid City, Business Bay, Ras Al Khor, and Dubai Hills Estate, as reported by Property Monitor.
Buyer Trends in Dubai’s Off-Plan Market
Dubai off-plan property market continues to attract a diverse range of buyers. In the villa segment, properties priced between AED2 to 5 million accounted for 75 percent of sales, appealing to those seeking more space and features without entering the high-end market.
Similarly, the off-plan apartment market in Dubai real estate is dominated by properties priced under AED2 million, making up 71 percent of total transactions. This segment attracts middle-income earners, expatriates, and investors with lower capital, due to its affordability and accessibility.