Dubai Property Market Likely to Keep Flourishing in 2025; Highest Quarterly Sales Ever Seen in Q4-24

The Dubai real estate market continues to showcase remarkable growth, establishing itself as a global hub for real estate investments. According to W Capital CEO, Walid Al Zarooni, the sector has experienced a consistent upward trajectory since the COVID-19 pandemic, supported by data from the Dubai Land Department.

Unprecedented Growth in Sales

From AED 69.80 billion in 2020, Dubai’s real estate sales surged to AED 149 billion in 2021, further climbing to AED 265.50 billion in 2022. The growth momentum continued with AED 401 billion in sales in 2023 and an impressive AED 517 billion recorded from January 1 to December 27, 2024.

W Capital’s earlier prediction of over AED 120 billion in sales during the summer of 2024 was not only achieved but surpassed. Al Zarooni emphasized that this unparalleled growth highlights the robust and sustained momentum within the Dubai real estate market, cementing its global reputation as the premier city to live and work.

Record Transactions and Values

The number of real estate transactions reached historic highs in 2024, increasing by more than 38% year-on-year (YoY) to approximately 178,900 deals, compared to 129,000 transactions in 2023. The value of these transactions—encompassing sales, mortgages, and donations—also saw a significant 35.80% rise to AED 753.60 billion, exceeding the half-trillion-dirham mark for the third consecutive year.

In 2024, total real estate transactions rose by 32% YoY to 223,904, compared to 169,720 in the previous year. Mortgage transactions contributed AED 185.77 billion, while grants added AED 50.86 billion across 9,319 transactions.

Q4-24: A Landmark Quarter

The fourth quarter of 2024 set a new benchmark for the Dubai real estate market, recording the highest quarterly sales ever at AED 142.7 billion. This performance included record-breaking monthly sales in October, amounting to AED 61.47 billion, followed by AED 43.65 billion in November and AED 37.48 billion in December. On a quarterly basis, Q4-24 sales grew by 0.50% compared to AED 142 billion in Q3-24.

Prospects for 2025

Al Zarooni forecasts sustained growth for 2025, albeit at a more moderate rate of 10% to 15%. This would push sales closer to the AED 600 billion threshold and total transactions beyond AED 850 billion. Dubai’s real estate figures in 2024 pave the way for achieving the ambitious target of AED 1 trillion in annual real estate transactions by 2033.

Strategic Milestones of 2024

The year 2024 marked significant milestones for Dubai’s real estate sector. The adoption of the Real Estate Sector Strategy 2033 emerged as a transformative initiative, reinforcing Dubai’s leadership in one of the world’s most vital sectors. This strategy aims to:

1. Strengthen collaboration with the private sector and international firms.

2. Enhance transparency through the optimal use of data and publishing supply-demand forecasts.

3. Launch innovative initiatives backed by an integrated system for sector-wide improvement.

These initiatives align with the Dubai Economic Agenda D33, positioning Dubai as the world’s most attractive destination for investments and fostering a diversified economy.

Billion-Dollar Projects and Future Outlook

The surge in Dubai’s real estate performance is attributed to ambitious billion-dollar projects launched by leading developers. These projects, supported by visionary strategies, ensure the sector’s upward trajectory for the coming decade. Al Zarooni described 2024 as a "prosperous harvest year," with sales exceeding AED 500 billion and a slew of transformative projects set to drive continued growth.

Conclusion

Dubai’s real estate market has demonstrated unparalleled growth, achieving milestones that solidify its position as a global leader. With strategic initiatives like the Real Estate Sector Strategy 2033 and the Dubai Economic Agenda D33, the market is well-prepared to sustain its upward trend, ensuring Dubai remains the city of choice for investors, residents, and businesses alike. The prospects for 2025 and beyond underscore a bright future for Dubai real estate, where ambitious goals align with innovative strategies to create unmatched opportunities.