Dubai luxury real estate market

Q2 2024 review

In the second quarter of 2024, Dubai's luxury real estate market demonstrated steady and confident growth. Driven by strong demand from foreign investors and a stable macroeconomic environment, the market continued to strengthen. However, experts noted early signs of stabilization in certain segments, particularly in the apartment sector. Here is a detailed analysis of the quarter’s key metrics and market dynamics.

Market overview

At the start of 2024, the market maintained strong momentum, with total transactions rising by 43.8%. However, the structure of demand shifted: sales in the sub-AED 1,000 per square foot segment dropped by 19.3% year-on-year.

According to data from CBRE and Knight Frank, in Q2 2024:

The total value of real estate transactions in Dubai exceeded AED 191 billion, up 38% compared to the same period in 2023.
More than 74,000 transactions were registered, marking a 36% year-on-year increase.
The average price per square foot in the luxury segment reached AED 4,784, and in the ultra-luxury segment—AED 5,127.

Price dynamics by property type

Luxury villas
  1. Annual price growth: +28%
  2. Key demand areas: Palm Jumeirah, Emirates Hills, District One
  3. Rental increase: 22–23%
Luxury apartments
  1. Annual price growth: +17%
  2. High-demand areas: Downtown Dubai, Jumeirah Bay Island
  3. Rental increase: 22–23%

Demand breakdown by area

The highest buyer interest in luxury properties during Q2
was observed in the following areas:

Charts & analytics

Year-on-year price growth for luxury villas and apartments

Villas outperformed apartments in price growth, reflecting
a heightened interest in private residences.

Conclusion

Q2 2024 confirmed the strength and resilience of Dubai's luxury real estate sector. Despite early signs of deceleration in some areas, international buyer interest remains strong, especially in villas and high-end locations. With limited inventory and a steady inflow of investors, the market will likely continue growing at a moderate pace in the coming quarters.

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