Dubai luxury real estate market

Q3 2024 review

The third quarter of 2024 reaffirmed the resilience and investment appeal of Dubai’s luxury real estate market. Despite global challenges and rising inflation, the luxury segment not only maintained its momentum but also showed growth in both transaction volumes and asset values. The villa segment and ultra-luxury properties priced above AED 20 million stood out in particular, with their market share continuing to expand.

Key market indicators

Total transaction volume: AED 138.8 billion (+40.8% vs. Q3 2023)
Residential sector: AED 115.6 billion (+40.8%)
Commercial sector: AED 23.2 billion (+28%)
Number of transactions: 47,663
According to Engel & Völkers and Morgans Realty, the high-end segment experienced strong activity throughout the quarter.

Premium segment trends

Number of luxury transactions: 635 (+9% YoY)
Deals above AED 20 million:
404 (63% of all luxury transactions)
Total value of premium segment deals: AED 17.17 billion

Price trends

Average price per sq. ft.:
AED 1,537
Price growth for villas and townhouses: +20% YoY
Price growth for apartments: +9% YoY
These figures confirm the ongoing trend of rising valuations for suburban and private residences, reflecting the preferences of high-net-worth buyers.

Rental market

Number of rental contracts:
123,899 (+17% vs. Q2 2024)
Share of new contracts:
42%

Geographic demand breakdown

Villas and townhouses: top locations

Conclusion

The third quarter of 2024 demonstrated that Dubai’s luxury real estate market remains one of the most resilient and profitable globally. Strong performance in the villa and ultra-luxury segments, rising prices and transaction volumes, and stable demand for rentals all reinforce investor confidence in the long-term outlook of the market.

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