Dubai’s real estate market has become a top choice for investors worldwide, driven by strong price growth, high transaction volumes, and a booming off-plan sector. In 2024, residential property prices rose sharply, with capital gains increasing by 27.5% compared to the previous year. This growth exceeded expectations and reinforced investor trust in the city’s property market.
Sustained Growth in Property Values
The ValuStrat Price Index recorded a month-on-month increase of 1.7% in December 2024, bringing the index to 200.7 points. This marks a significant milestone, as the index has now doubled from its pandemic-era levels. Villa values surged to 259 points, while apartments stood at 162.8 points, using January 2021 as the base level of 100 points.
Villa vs Apartment Market Performance
The villa segment saw the highest capital appreciation, rising by 31.6% annually, driven by strong demand in luxury communities. Jumeirah Islands recorded the most significant growth at 42.5%, followed by Palm Jumeirah at 42.3%, Emirates Hills at 32.3%, and Dubai Hills Estate at 32.1%.
Apartments also recorded significant growth, with an an average annual increase of 23.6%. The Greens emerged as the top-performing area, registering a 31% appreciation, followed by Palm Jumeirah at 28.3%, The Views at 27.1%, and both Town Square and Discovery Gardens at 26.4%.
Off-Plan Market
Dubai’s off-plan market experienced unprecedented growth, with Oqood registrations rising by 513.8% year-on-year and 26.3% month-on-month in December. Off-plan transactions accounted for 71.1% of all residential sales during the period, reflecting the strong demand for new developments. In contrast, sales of ready secondary homes declined by 8.7% on a monthly basis and 3.4% year-on-year, underscoring the market’s increasing shift toward off-plan properties.
Top Developers and Investment Hotspots
Emaar led the market with 12.8% of total developer sales in December, followed by Damac (8.1%), Binghatti (7.6%), Azizi (5.9%), and Sobha (4.6%). Key off-plan investment hubs included Jumeirah Village Circle (13.1%), Business Bay (10.2%), and Dubailand Residence Complex (5.7%). In contrast, ready home sales were most active in Jumeirah Village Circle (9.1%), Dubai Marina (6.6%), Business Bay (6.1%), Downtown Dubai (4.8%), and Jumeirah Lake Towers (2.9%).
Looking Ahead
Dubai’s real estate market is ready for a sustained growth in 2025, driven by strong investor demand, a dynamic off-plan sector, and a continuous influx of high-net-worth individuals. While capital appreciation may align with global market trends, the emirate’s stable economic foundation and strategic urban development will continue to enhance its appeal to investors.
One Investments recognizes the importance of capitalizing on opportunities in a growing economy. With a focus on identifying strategic investment avenues, the firm offers a portfolio that combines world-class luxury with modern convenience.
Whether the objective is to reconnect with homeland or acquire high-value real estate, these properties present exceptional investment potential. Investing today ensures a lasting legacy for future generations.
