The Dubai residential property market recorded an impressive 27.5% annual growth in 2024, far outpacing earlier expectations, according to the latest ValuStrat Price Index (VPI) report.

As of December 2024, the VPI climbed 1.7% month-on-month to reach 200.7 points, a significant milestone as the index has now doubled compared to its pandemic-era levels. This marks a slight moderation from November’s 1.8% increase, continuing a trend of decelerating growth since August. Villa values reached 259 points, while apartments stood at 162.8 points, both benchmarked to January 2021 levels.

Villas Outperform Apartments

Villas maintained their lead in capital appreciation, achieving monthly gains of 2.1% and a remarkable annual growth of 31.6%. Prime locations such as Jumeirah Islands (42.5%), Palm Jumeirah (42.3%), Emirates Hills (32.3%), and Dubai Hills Estate (32.1%) emerged as top performers. In contrast, Mudon (13.5%) and Jumeirah Village Triangle (21.5%) recorded the lowest increases, with Mudon remaining stable for the fourth consecutive month.

Apartments also showed robust growth, rising by 1.4% month-on-month and 23.6% year-on-year. The Greens (31%), Palm Jumeirah (28.3%), and The Views (27.1%) led the segment, while International City (16.9%) and Dubai Sports City (18.1%) posted relatively modest gains.

Surge in Off-Plan Sales

Off-plan properties saw extraordinary growth, with Oqood registrations increasing by 26.3% month-on-month and an astounding 513.8% year-on-year. These accounted for 71.1% of all home sales in December, while transactions for ready secondary homes dipped 8.7% monthly and 3.4% annually.

High-End and Prime Locations Shine

The luxury property segment also saw significant activity, with 29 transactions for ready homes valued above AED 30 million. Key locations included Bluewaters Island, Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Downtown Dubai, Business Bay, and District One.

Leading Developers and Popular Areas

Emaar dominated developer sales in December with a 12.8% share, followed by Damac (8.1%), Binghatti (7.6%), Azizi (5.9%), and Sobha (4.6%). Top off-plan transactions were concentrated in Jumeirah Village Circle (13.1%), Business Bay (10.2%), and Dubailand Residence Complex (5.7%).

For ready homes, Jumeirah Village Circle (9.1%), Dubai Marina (6.6%), and Business Bay (6.1%) were the most sought-after areas. Notably, Business Bay and Dubailand Residence Complex set new records for off-plan sales in a single month.

A Record-Breaking Year

Dubai witnessed over 168,000 residential transactions in 2024, according to Emirates NBD. Of these, 114,480 were under-construction units, making up 68% of the market, a sharp rise from 54% in 2023. The year also saw a record-breaking 142,000 units launched across the city, reflecting the surging demand for real estate.

Dubai’s real estate market continues to demonstrate resilience and exceptional growth, positioning itself as a leading global hub for real estate investment.