The Dubai residential real estate market saw a 20 per cent increase in sales prices and a 19 per cent rise in rental rates in 2024, according to Deloitte’s annual Real Estate Predictions report.
The Emirate’s reputation as a safe-haven for investors remains solid, bolstered by a 5 per cent increase in population, record-high residential transactions, and robust economic expansion.
Villas continue to outperform apartments in price growth, while rental hikes remain steady across segments.
Dubai real estate predictions
The influx of new supply later in 2025 may stabilise price increases but is unlikely to dampen the overall momentum of the sector.
Despite global economic fluctuations, Dubai’s office sector demonstrated resilience, with rents rising 17 per cent year-on-year, reflecting sustained demand from multinational corporations seeking prime office space.
Meanwhile, the retail sector remains a key growth driver, with total retail expenditure in Dubai expected to increase by 6 per cent from 2025 to 2027.
The hospitality sector reached new heights, with average hotel occupancy rates hitting 78 per cent in 2024.
Oliver Morgan, Partner at Deloitte Middle East, said: “Dubai’s real estate sector continues to thrive due to strong investor confidence, a diversified economy, and a strategic vision for long-term urban development with a robust masterplan.
“It is driven by strong economic fundamentals, attractive lifestyle offerings, and progressive policies.
“The sustained influx of expatriates and tourists over the past year, coupled with major infrastructure projects, positions Dubai as one of the most dynamic real estate markets in the world.”
Residential real estate
Dubai’s residential market retained its upward trajectory, with average sales prices rising by 20 per cent in 2024 to AED 1,597 ($435) per sq ft.
Sales transaction volumes surged in 2024, marking unprecedented levels, with 44 per cent of transactions in the secondary market.
The demand for affordable, family-friendly villa communities and townhouses remains strong.
Gross rental yields grew to 6.7 per cent, reflecting the sustained demand across villas and apartments. Rent increases were most prominent in Dubailand, Meydan, and International City, with year-on-year spikes ranging from 39 per cent to 46 per cent.
The rental market remains dominated by cash buyers and existing residents seeking affordable villas and townhouses.
