Dubai’s Residential Real Estate Witnessed Growth in Q4 2024: Morgan’s International

The latest report by Morgan’s shows strong sales and transactions in the sector

Dubai’s residential property market continues to thrive, with robust growth observed in the final quarter of 2024. According to the latest report by real estate brokerage firm Morgan’s International Realty, the city recorded a total of 48,291 transactions in Q4 2024, marking a 1% increase quarter-on-quarter. The total worth of transactions reached AED 137.16 billion, reflecting a 5% growth from the previous quarter.

Key Highlights

The average price per square foot in Dubai stood at AED 1,562, with the highest price recorded at AED 16,018 per square foot for a luxury unit at The Royal Atlantis Resort and Residences. Jumeirah Village Circle (JVC) emerged as the top-performing community, with 4,504 transactions. Additionally, the most expensive property sold during the quarter was a customized villa in Palm Jumeirah's Frond G, valued at AED 200 million.

Market Trends

The residential sector showed varied performance across different property types. Apartments led the market, with an average price per square foot of AED 1,763, followed by hotel apartments at AED 2,239. Villas and townhouses, priced at AED 1,383 per square foot, also saw significant demand. In terms of transaction volume, cash sales represented 51% of total transactions, while 49% were financed through mortgages.

A significant portion of the transactions took place in the primary market, which accounted for 63% of the total, while the secondary market contributed 37%. In the off-plan sector, initial sales accounted for 90% of transactions, indicating continued investor confidence in upcoming developments.

Leasing Market Insights

The leasing market also remained strong, with a total of 130,530 rental transactions recorded in Q4 2024. The median rent price per square foot was AED 91, with new contracts averaging AED 300,000 per year for a three-bedroom unit. The most active leasing markets included areas like Dubai Marina, Downtown Dubai, and Palm Jumeirah.

Future Supply and Developer Activity

Dubai's real estate supply remains robust, with 784 projects and 229,285 units set to be delivered by December 2024. Apartments make up 80% of future developments, followed by villas and townhouses at 18%. Notable developers in the off-plan sector include Emaar, Sobha Group, and Binghatti, with Emaar leading in terms of sales volume.

Summing it All

The Q4 2024 report from Morgan’s International Realty highlights Dubai’s continued strength as a global real estate hub, driven by a diverse range of property types and a steady flow of investment. As the market remains dynamic, it offers lucrative opportunities for both buyers and investors.

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