Dubai: Affordable Residences Under Dh1 Million Among Top-Selling Properties


(MENAFN- Khaleej Times) Affordable properties are beginning to dominate the Real estate sector in Dubai, as more people seek to make the emirate their home, data showed on Tuesday.

According to the latest report from Engel & Völkers Middle East, a leader in premium residential and commercial real estate services, properties under Dh1 million climbed to 32.2 per cent of sales, up from 26.7 per cent in October. Studios and one-bedroom apartments saw heightened interest, further solidifying apartments as the dominant asset class, comprising over 84 per cent of total sales.

The top three communities by sales transactions were Jumeirah Village Circle with 1,035 units sold, Jumeirah Village Triangle with 670 units and Business Bay with 423 units.

Overall, Dubai's real estate market continued to demonstrate remarkable resilience and robust growth in November, with the residential sector achieving a 15.4 per cent year-over-year increase, Engel & Völkers data showed.

The city's residential sector recorded 12,695 sales transactions.“While the figure reflects a cooling off from October's record-breaking figures, it underscores the market's sustainable and steady growth. The month also saw a modest 0.38 per cent increase in average prices, reinforcing the market's continued uptrend,” Engel & Völkers said in a statement.

Meanwhile, the commercial real estate market showcased a strong performance, with total sales value reaching Dh 9.2 billion - a 3.1 per cent year-on-year increase. Office sales surged by 24.2 per cent, accompanied by a remarkable 31.1 per cent year-over-year rise in average prices, highlighting the persistent demand and limited supply of premium office spaces.

Rental activity mirrored this growth, with transaction volumes increasing 21.9 per cent compared to October. Average rents across all sectors rose by 18.0 per cent year-on-year, led by office spaces, which saw a 28.1 per cent increase in average rents. High occupancy rates and strong competition for Grade A spaces continue to define Dubai's thriving commercial sector.

Office transactions were highest in Business Bay with 119 units sold, followed by Jumeirah Lakes Tower and Barsha Heights (TECOM). Top communities by rental transactions were Deira, DIP and Bur Dubai.

Daniel Hadi, CEO at Engel & Völkers Middle East

Daniel Hadi, CEO of Engel & Völkers Middle East noted:“Dubai's real estate market continues to demonstrate exceptional strength and adaptability, driven by sustained demand and solid fundamentals. The residential sector's steady growth, with increasing interest in affordable and compact living options, reflects a dynamic and maturing market catering to diverse needs. Meanwhile, the commercial sector's impressive performance - marked by surging office sales and rental growth - underscores Dubai's position as a global business hub.”

“As Dubai's economy expands and continues to attract global businesses and residents, the city's real estate sector remains on track for sustained growth. The November report highlights the market's adaptability, strong investor confidence, and potential for record-breaking achievements as we approach 2025,” concluded Hadi.

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Khaleej Times

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