Tuesday, 02 January 2024 12:17 GMT

Affordable Unit Sales Soar In Dubai Realty As Tenants Turn To Ownership


(MENAFN- Khaleej Times) The affordable section of Dubai's booming Real estate saw significant gains last year, as more tenants veered towards ownership, data showed.

According to Emirates NBD Research, units priced between Dh1 million to Dh2 million saw especially robust growth with a 71 per cent year on year increase in demand.

Throughout the year, the city witnessed more than 168,000 residential transactions across freehold markets, Emirates NBD data showed. A total of 114,480 under construction units were sold in 2024. Their share in overall transactions has increased from 54 per cent in 2023 to 68 per cent in 2024.

In line with the spectacular growth in demand, the number of units launched across the city has also reached an all-time-high. A total of 142,000 units were launched across Dubai in 2024.

“When compared to December 2020, average prices across apartments are now 65 per cent higher while villa/townhouse average rates/sq. ft. have more than doubled,” Swapnil Rajasekharan Pillai, Director, Real Estate Research, Emirates NBD, wroter in the report.

In the fourth quarter, total sales transaction values reached Dh116.5 billion, reflecting a 31.1 per cent year-on-year increase, with transaction volumes surging 51.8 per cent to 46,844 closed deals.

According to Springfield Properties' Q4 2024 Dubai Real Estate Market Report, at the heart of this growth lies the off-plan market, which contributed over half of the total transaction value, as well as Dubai's thriving luxury property segment, which continues to attract high-net-worth individuals and institutional investors worldwide. Established communities like Palm Jumeirah, Downtown Dubai, and Dubai Marina remain dominant, offering a blend of exclusivity, lifestyle appeal, and long-term value.

Farooq Syed, CEO of Springfield Properties, stated:“Dubai's real estate market continues to demonstrate remarkable strength and global appeal, underpinned by strategic planning, visionary developments, and investor confidence. This growth is the result of a deliberate focus on meeting evolving buyer preferences while setting new benchmarks in quality, innovation, and sustainability”.

The report highlights the off-plan segment's pivotal role in driving Dubai's real estate success, with 30,388 transactions recorded in Q4, supported by innovative payment plans and a strong investor appetite for future-ready assets. Areas such as Dubai South and Jumeirah Village Circle emerged as growth hubs for mid-income buyers, while luxury off-plan developments in Palm Jumeirah and Dubai Hills Estate attracted a global audience seeking exclusivity and modernity.

Simultaneously, the luxury segment reinforced its position as a key driver of market value, with premium properties in Palm Jumeirah achieving the highest average sales price at Dh4,600 per square foot. These numbers underline Dubai's ability to cater to the highest echelons of global demand, ensuring its status as a leader in the ultra-luxury market.

Farooq Syed CEO of Springfield Properties.

Syed added:“Dubai's appeal to high-net-worth individuals is about delivering a seamless integration of lifestyle, security, and strategic value. Buyers and investors see Dubai as a city that not only offers world-class amenities but also understands their aspirations for long-term growth and stability”.

As Dubai's population approaches 4 million in 2025, demand across all property segments continues to rise. Key areas such as Dubai South, with its focus on inclusivity and strategic infrastructure, are expected to complement the ongoing strength of luxury hubs like Palm Jumeirah and Downtown Dubai. The city's alignment with the Dubai 2040 Urban Master Plan further highlights its commitment to building a sustainable, forward-thinking real estate ecosystem that appeals to both global investors and end-users.

“Dubai has positioned itself as a global real estate leader by continuously adapting to market dynamics and driving innovation,” Syed concluded.“As we move into 2025, the focus will remain on delivering value-driven projects that reflect Dubai's unique ability to combine inclusivity with exclusivity, setting the standard for urban living in the years ahead”.

The Q4 2024 results highlight a pivotal year for Dubai's real estate sector, showcasing its adaptability, resilience, and ability to capture global attention. As the city transitions into 2025, Dubai is uniquely positioned to continue reshaping the real estate landscape with its strategic developments, forward-thinking policies, and unwavering focus on excellence.

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