Dubai: Dubai continues to strengthen its global appeal as it further solidifies its position as one of the most dynamic and sought-after residential markets, according to a report by Metropolitan Homes, a division of the Metropolitan Group focusing exclusively on Dubai’s secondary property market for end-users, investors and wealthy asset owners.

The report titled ‘H1 2024 Residential Resale Market Review 2024’ provides an in-depth review and highlights an exceptional performance in Dubai’s secondary sales market (off-plan and secondary resale).

Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Homes, said: “Dubai’s real estate market has shown remarkable strength and growth in the first half of 2024. The record-breaking sales volume and price increases during this period demonstrate Dubai’s thriving economy and its continued appeal as a global real estate destination. As Dubai continues to benefit from its global standing as an attractive international city, we are confident about the future growth of the real estate market, driven by factors such as increasing foreign investment, infrastructure development and the city’s ongoing efforts to attract talent and businesses.”

Dubai’s residential resale market has seen significant growth. Transaction volumes increased by 17.8% year-over-year to 27,949 and transaction values rose by 23.1% to AED 76.34 billion. Despite the unprecedented floods that impacted the city in April, the market quickly rebounded to record-breaking levels. May 2024 set a new benchmark with 17,139 residential resale transactions – the highest monthly total ever recorded. This surge highlights the market’s resilience and continued growth momentum.

Key highlights from the report (all comparisons are vs. H1 2023)

  • Average Resale Prices: The average residential resale price per square foot rose to AED 1,545, a nearly 7% increase compared to H1 2023.
  • Demand for Apartments: Apartments remain the most sought-after residential option in Dubai, accounting for 77% of all resale transactions. Apartment sales totaled 21,578 units, a 20% increase from the previous year, with a total value of AED 39.99 billion. The average apartment price rose 5.5% to AED 1,592 per square foot. Palm Jumeirah remains the most sought-after area, but Dubai South and Dubai Studio City saw a surge in online searches. The strong demand for apartments reflects Dubai’s appeal for those seeking low-maintenance, high-quality living environments.
  • Villa and Townhouse Growth: The demand for villas and townhouses has also surged. Villa resale values increased by 22.6% to AED 24.60 billion, with 2,378 transactions. Townhouse resales saw a 37.4% increase to AED 11.74 billion, from 3,993 transactions. The average residential villa/townhouse price per square foot rose 11.3% to AED 1,444. This growth indicates a rising demand among families and long-term residents. The doubling of school students in Dubai since 2008 underscores the growing trend of expats seeking to raise families in the emirate.
  • Increased Demand for Specific Areas: Jumeirah Islands, Mohammed bin Rashid City and Dubai South emerged as highly sought-after locations for property sales, driven by their strategic development and amenities.

Top 3 Apartment sales

  1. A 4-bedroom apartment in Downtown Dubai’s Kempinski Boulevard sold for AED 80,000,000
  2. A 4-bedroom apartment in Dubai Water Canal’s The Four Seasons sold for AED 72,000,000
  3. A 6-bedroom apartment in Downtown Dubai’s The 118 sold for AED 65,000,000

Top searched areas (apartments)

  • Jumeirah Village Circle (JVC)
  • Dubai Marina
  • Business Bay
  • Downtown Dubai

Top 3 Villa sales

  1. Jumeirah Bay Island AED 240,500,000
  2. Jumeirah Bay Island AED 160,000,000
  3. Jumeirah Bay Island AED 155,000,000

Top 3 Townhouse sales

  1. Umm Suqeim, Umm Suqeim 2 AED 34,000,000
  2. Jumeirah Bay Island, Villa Almalfi AED 31,000,000
  3. Jumeirah Village Circle, JVC District 16 AED 25,000,000

Top searched areas (Villas and Townhouses)

  • Al Furjan
  • Arabian Ranches 3
  • DAMAC Hills 2
  • Dubai Hills Estate

Future Outlook

Metropolitan Homes remains optimistic about the continued growth and resilience of Dubai’s residential resale market for the remainder of the year. Despite global uncertainties, Dubai offers a stable and attractive environment for investors and end-users. The market’s strong fundamentals and Dubai’s strategic position make it a compelling choice.

The city’s rising average sales and rental prices indicate a shift towards mid-market properties, aligning with the Urban Master Plan 2040 and growing population.

According to Metropolitan Homes, the key areas to watch include Dubai South (EMAAR South, Expo City etc.) and Dubailand (The Valley by EMAAR, The Oasis by EMAAR etc.) with increased investments and more developments upcoming during the reminder of the year and beyond.

Data source: Property Monitor & Bayut