The Dubai real estate market saw notable growth in the fourth quarter of 2024, driven by limited supply and increasing demand. Preliminary estimates from ValuStrat indicate that 58 percent of the projected residential supply was delivered, equating to about 27,000 completed homes—marking the lowest number in six years. Meanwhile, population growth exceeded expectations, adding over 170,000 new residents, the highest increase since 2018. This disparity between supply and demand has led to significant increases in property prices and rental rates.
According to the ValuStrat Price Index, annual capital value increases were observed across key sectors: apartments grew by 23.6 percent, villas by 31.6 percent, offices by 23.9 percent, and warehouses by 15 percent. Annual rents also rose, with villas increasing by 5.8 percent, apartments by 13 percent, and offices by 22.5 percent.
However, challenges persisted, particularly in residential and office transactions, mainly due to a drop in off-plan sales. Despite this, ready sales reached an all-time high, with the highest number of transactions recorded in a single quarter.
Key market indicators
The hospitality sector thrived with 155,000 hotel rooms, achieving a remarkable 78 percent occupancy and a 2.8 percent rise in revenue per available room (RevPAR). This performance underscores Dubai’s enduring appeal and resilience in the real estate market.
For a detailed perspective on the property market, visit: Dubai - Review 2024 - Outlook 2025
