Dubai’s real estate market witnessed exceptional growth in 2024, with affordable housing emerging as a key contributor to this expansion. As more tenants transition into homeownership, the demand for properties priced between AED 1 million and AED 2 million has soared, showing a 71% year-on-year increase.
The Rise of Affordable Home Sales
Last year saw over 168,000 residential transactions in Dubai's freehold markets, reflecting the city’s growing appeal among residents and investors alike. Of these, more than 114,000 were under-construction units, highlighting the off-plan market's dominant role. The share of off-plan sales grew significantly, comprising 68% of all transactions compared to 54% in the previous year.
Dubai's evolving buyer preferences and innovative payment plans have fueled this demand, allowing more mid-income buyers to enter the market. Areas such as Dubai South and Jumeirah Village Circle have become growth hubs, offering value-driven housing options for first-time buyers and investors.
A Record Year for New Developments
In line with growing demand, 2024 marked a record year for new project launches, with 142,000 units introduced to the market. These developments align with Dubai’s long-term urban planning goals, focusing on delivering modern, sustainable, and future-ready homes.
Average property prices across the city have risen sharply over recent years. Compared to December 2020, apartment prices are up by 65%, while villa and townhouse rates per square foot have more than doubled. This trend reflects the city’s ability to balance affordability with rising property values, making it a haven for investment.
Luxury Market Continues to Shine
While affordable housing is driving volume, Dubai’s luxury real estate segment remains a critical driver of market value. Premium properties in established communities continue to attract buyers seeking exclusivity, modernity, and long-term value. Properties in areas such as Palm Jumeirah and Dubai Hills Estate have commanded some of the highest average prices per square foot, catering to global demand for ultra-luxury homes.
Dubai’s appeal lies in its ability to offer a seamless blend of lifestyle, security, and strategic growth. For high-net-worth individuals, the city remains a top choice for its world-class amenities, forward-thinking developments, and long-term investment potential.
Strategic Vision for the Future
As Dubai’s population approaches 4 million in 2025, demand across all property segments is expected to rise. The city’s alignment with its urban master plan ensures that its real estate market remains sustainable, inclusive, and globally competitive. Infrastructure investments and strategic planning are further enhancing the appeal of emerging areas, complementing the strength of luxury hubs.
Dubai’s real estate market continues to set benchmarks in quality, innovation, and adaptability. With its focus on delivering value-driven projects that balance inclusivity and exclusivity, the city is well-positioned to shape the future of urban living and maintain its status as a global leader in real estate.
2024: A Transformative Year
The past year underscored Dubai’s resilience and ability to adapt to changing market dynamics. As the city moves into 2025, its real estate market is poised to reach new heights, driven by visionary developments and unwavering investor confidence. Whether through affordable homes or luxury properties, Dubai offers a unique opportunity for buyers and investors to be part of a thriving ecosystem that prioritizes innovation, sustainability, and excellence.
