Dubai’s Real Estate Market Sees Robust Growth in November
Dubai’s real estate market has shown remarkable resilience and growth in November, with the residential sector experiencing a 15.4% year-over-year increase in sales. At the same time, the commercial market reached a sales value of AED 9.2 billion (approximately $2.5 billion). This ongoing growth highlights the city’s steady recovery and its position as a global real estate powerhouse.
Residential Market Highlights
The residential sector recorded a total of 12,695 sales transactions in November. While this figure marks a slight cooling compared to October’s record-breaking performance, it still demonstrates sustainable growth. Notably, average property prices saw a modest increase of 0.38%, reinforcing the positive trend in the market.
One of the most significant shifts observed was the growing demand for more affordable properties. In November, sales of properties priced under AED 1 million surged to 32.2% of total transactions, up from 26.7% in October. This growing appetite for affordable living options further emphasizes the dominance of apartments in the market. In fact, over 84% of all residential sales were apartments, with studios and one-bedroom units seeing increased interest.
The top-performing communities in terms of sales transactions were Jumeirah Village Circle, Jumeirah Village Triangle, and Business Bay. Jumeirah Village Circle led the pack with 1,035 units sold, followed by Jumeirah Village Triangle with 670 units, and Business Bay with 423 units.
Commercial Market Performance
Dubai’s commercial real estate market also showed strong performance in November, with total sales reaching AED 9.2 billion, a 3.1% increase from the previous year. Office space sales saw a substantial 24.2% jump, and average office prices climbed 31.1% year-over-year, driven by continued demand for premium office spaces.
Rental activity in the commercial sector mirrored the overall market growth. Transaction volumes for office spaces increased by 21.9% compared to October, and average rents across all sectors rose by 18.0% year-on-year. Office rents saw the highest growth, up by 28.1%, driven by high demand for Grade A office spaces. Business Bay was the top area for office transactions, with Jumeirah Lakes Towers and Barsha Heights (TECOM) also showing strong performances.
Rental Market Trends
In addition to sales growth, Dubai’s rental market continued to thrive. Rental transactions increased by 21.9% from October, with the highest activity seen in Deira, Dubai Investment Park (DIP), and Bur Dubai. Across all sectors, average rents increased by 18.0%, with office spaces leading the way in terms of rental growth.
Outlook for 2025 and Beyond
Daniel Hadi, CEO of Engel & Völkers Middle East, commented on the market’s impressive performance: “Dubai’s real estate sector continues to show exceptional strength and adaptability. The growth in the residential sector, coupled with increasing demand for affordable and compact living spaces, reflects the market’s evolution and diversification. The commercial sector’s strong performance, with notable increases in office sales and rents, underscores Dubai’s role as a key global business hub.”
As Dubai’s economy continues to expand and attract global businesses and residents, the real estate market remains on track for sustained growth. With investor confidence high and a positive outlook for the future, Dubai’s real estate sector is poised to achieve record-breaking milestones as we approach 2025.
In summary, November’s real estate performance highlights Dubai’s dynamic and maturing market, which continues to cater to diverse needs and offers strong investment opportunities across both the residential and commercial sectors.