Dubai’s Real Estate Deals Valued $38 Billion in Q3-2024

Dubai’s real estate market achieved record-breaking sales in the third quarter of 2024, with a 38.2% y-o-y increase to over 50,400 transactions valued around $38.66 billion, up 30.1% y-o-y. Off-plan sales accounted for 63% of total transactions, surging 58.7% y-o-y and drawing in $18.36 billion, according to a new report.

Commercial property sales in Dubai climbed to $6.31 billion in the third quarter of this year despite a slight dip in the volume of sales, marking a 28.7% y-o-y increase, Engel & Volkers Middle East, a German company that provides services related to real estate transactions, said.

In its latest commercial market report, the firm said that sales transactions fell 6.5% y-o-y during the quarter to just 2,800 transactions, dominated mostly by secondary transactions.

Both offices and retail units were popular during the quarter, with sales of the former up 12.6% y-o-y and the latter up 16.8% y-o-y. Business Bay area dominated the lion’s share of transactions, with 422 trades made at an average price of $1.52 million.

The rental transactions were down in the third quarter as Dubai witnessed approximately 48,900 transactions in the commercial rental market during the quarter, falling 1.9% y-o-y. Still, average rental prices increased, growing 4% for office and retail spaces and 19% for warehouse rents.

Deira district remained the most sought after destination and highest transacting area for both office and retail spaces, recording 16,000 retail and 4,000 office transactions. Meanwhile, Business Bay and Jumeirah Lakes Towers were top choices for Grade A office rentals highlighting their ongoing appeal as prime business districts.

Overall, the rental market remained robust supported by high demand and quality commercial properties in key locations across the city.

Appealing to Global Investors

Engels & Volkers Middle East CEO Daniel Hadi said that Dubai’s real estate market continued to demonstrate its resilience and appeal to a global audience, as both residential and commercial sectors have experienced significant growth.

He said that the city’s strategic vision, business-friendly environment, and world-class infrastructure continue to attract investors from around the world.

“With demand for premium properties at an all-time high, and the government’s economic diversification initiatives bolstering growth in key sectors, we anticipate continued upward momentum across all real estate segments,” he added.

Even Dubai’s luxury market is on track for a record-breaking year, despite a 6% y-o-y decline in sales over $27.2 million during the third quarter, the firm said in a separate residential market report. “Activity levels in the luxury market are still significantly higher than during thew second half of 2023, driven by an ongoing influx of high-net-worth individuals to the emirate,” the report said.

Palm Jumeirah topped the market with 110 sales priced at over $27.2 million recorded, including three transactions exceeding $54.45 million and a penthouse sold for $74.87 million. The Oasis came second with 101 units sold, followed by Nad Al Sheba (91) and Mohammed Bin Rashid City (78).