The Dubai real estate market is poised for another strong year in 2024, with record-breaking sales volumes and property values.
The outlook for the Dubai real estate sector during the 2024/2025 business season remains highly optimistic. Analysts forecast robust sales, rising property values, and rapid absorption of new inventory, all of which are expected to drive sustained expansion.
Experts at TGlobal Realty predict steady growth across the UAE’s real estate market, supported by strong demand across multiple sectors, a surge of new developments, and the continued adoption of advanced technologies.
This growth will be driven by both domestic and international investors, highlighting the market’s resilience and strategic importance in the region.
Market Performance and Trends
Dubai’s property market is on course for another stellar year in 2024, with sales volumes and values continuing to break records. In July 2024, the sector recorded AED49.6 billion ($13.5 billion) in property sales, marking a 31.63% increase compared to the same period in 2023.
The surge is largely attributed to high demand for luxury properties in prestigious areas such as Palm Jumeirah. The first half of 2024 alone saw over 43,000 property transactions, valued at around AED122.9 billion, a 30% increase from the previous year. The rapid absorption of new inventory is a significant factor, with 80% of units launched since 2022 already sold.
Supply Surge and Its Implications
The upcoming years will see a considerable rise in property supply, with around 41,000 units expected in 2025 and 42,000 in 2026, an 80% increase compared to the projected 27,000 units in 2024.
While this influx presents vast opportunities for both buyers and investors, there is a risk of oversupply, which may lead to price stabilization or slight declines in certain market segments. Nevertheless, TGlobal Realty believes the market’s resilience, driven by strong investor confidence and strategic urban planning, will help absorb much of this new supply.
Investment Opportunities and Strategic Timing
For investors, the 2024/2025 season offers a key window to maximize returns. The luxury segment remains strong, with prime areas like Palm Jumeirah and Downtown Dubai continuing to attract high-net-worth individuals.
Additionally, increasing interest in mid-tier and affordable housing is notable in areas such as Dubai Silicon Oasis and Jumeirah Village Circle, where rental yields are particularly promising.
Technological Integration and Proptech Growth
We believe that the Dubai real estate market is also undergoing a technological transformation, driven by advancements in artificial intelligence (AI) and digital platforms. These innovations are reshaping how properties are marketed and sold. Tools like virtual tours, 3D floor plans, and AI-driven market analysis are becoming standard, improving transparency and making the buying process more efficient.
The rise of proptech solutions is expected to continue into 2024 and beyond. TGlobal Realty foresees these technologies playing an increasingly critical role in how developers and investors interact with the market. This trend is part of a broader global shift toward tech-enhanced real estate practices, ensuring that Dubai remains a leader in the property sector’s digital transformation.
Challenges and Market Dynamics
Despite the optimistic forecast, the market does face certain challenges, such as the risk of oversupply and the resulting downward pressure on rental prices. Additionally, the limited availability of prime development land is prompting a shift towards more sustainable growth strategies beyond 2026. This transition is expected to stabilize the market in the long run, maintaining Dubai’s appeal as a prime destination for real estate investment.
