The leading international consulting company Knight Frank has published a detailed review of the real estate market in Dubai. The review reveals impressive growth trends and prospects for the development of the residential sector in the emirate.
According to the study, the cost of real estate in Dubai has already increased by 19.9% compared to the same period last year. This significant jump in prices is due to unprecedented demand and limited supply in the residential real estate market.
Key statistics eloquently illustrate the market dynamics:
- The third quarter of 2024 saw a record 47,269 transactions, a 41.8% increase over 2023.
- The total transaction volume from January to September 2024 was AED 306.3 billion ($83.4 billion), up 36% from the same period last year.
- The number of real estate listings decreased by 30% year-on-year.
Knight Frank experts predict that the trend of price growth will continue in 2025, although at a more moderate rate—about 8%. This is especially indicative of the increase in the share of premium real estate: if in 2020, the share of homes worth over a million dollars was 6.3%, now this figure has reached 18.1%.
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Faisal Durani, head of research for the MENA region, notes: “Almost one in five homes in Dubai are now priced over a million dollars. The pace of luxury real estate sales has tripled in the last year and a half.” It is noteworthy that developers are actively responding to the growing demand. Around 300,000 residential units are planned by the end of 2029, with 80.1% as apartments and 17.4% as villas.
However, analysts warn of potential risks affecting the real estate market. These include a possible slowdown in the global economy, fluctuations in oil prices and competition from other fast-growing cities in the region, such as Riyadh.
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Petri Mannila, partner at the firm, emphasizes: “Limited land availability in key locations in the city is driving up prices for housing under construction and increasing the value of the secondary market, especially for redeveloped properties.” Dubai’s real estate market is demonstrating steady growth and attractiveness for investors, despite the predicted slowdown in value growth in the coming years. The news was interesting and informative. Want more of the latest real estate news? Subscribe to Lyukos updates and receive notifications about fresh publications.
