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What do the latest numbers reveal about the UAE’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in the UAE, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Jean-Charles Salvin 🇫🇷
Co-Founder, Best Dubai Condos
1) Luxury property prices per square meter in Dubai rose by at least 5% in 2024
The average price per square meter for luxury properties in Dubai increased by at least 5% in 2024.
Dubai's real estate market is buzzing, with a year-on-year volume increase of over 30% in the first half of 2024. This surge is largely due to foreign buyers snapping up properties and a noticeable shift towards suburban areas.
Luxury properties are the real stars here. High-net-worth individuals are flocking to hotspots like Palm Jumeirah and Downtown Dubai, leading to a 47% jump in sales transactions over AED 10 million in the first half of the year.
Foreign investors are particularly drawn to Dubai's luxury market, attracted by its vibrant lifestyle and strategic location. This influx has contributed significantly to the absorption of existing inventory, pushing prices higher.
Suburban areas are also seeing a boom, as more people seek spacious living away from the city center. This movement has further fueled the growth in the real estate market, making it a dynamic time for potential buyers.
With these trends, Dubai's luxury real estate market is not just growing; it's thriving, offering lucrative opportunities for those looking to invest in prime locations.
Sources: The Luxury Playbook, CBRE, Gulf Business
2) In 2025, Abu Dhabi offers rental yields of 6% to 7%, making it highly profitable for investors
In 2025, rental yields in Abu Dhabi are averaging between 6% and 7%, making it a hotspot for investors.
Abu Dhabi's rental market is thriving, thanks to its stable and attractive yields. Back in April 2024, the city saw gross rental yields averaging 6.46%, with apartments at 6.82% and villas at 5.31%. This trend continues to draw investors looking for reliable returns.
Location, property type, and market demand play a big role in these yields. Apartments generally offer higher yields, ranging from 6% to 8%, while villas provide yields between 4% and 6%. This gives investors a range of options to match their strategies and risk levels.
Looking ahead, property values in Abu Dhabi are expected to grow annually by 4% to 6% by 2025. This projected growth is fueled by increased demand and strategic urban development, making the city an attractive investment destination.
Investors are drawn to Abu Dhabi not just for its current yields but also for its potential. The city's thriving investment climate is supported by ongoing urban development and a robust demand for properties.
With these factors in play, Abu Dhabi stands out as a city where investors can find both immediate returns and long-term growth opportunities.
Sources: Sands of Wealth, Tenco Homes, Global Property Guide
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Off-plan property sales made up over 60% of Dubai's real estate transactions in 2024
In 2024, off-plan property sales accounted for over 60% of total real estate transactions in Dubai.
This surge was driven by a 49% increase in under-construction property sales compared to the previous year. The real estate market in Dubai had been on a steady rise since the post-pandemic recovery, with transactions reaching over $172 billion in 2023. This growth was fueled by a significant imbalance between supply and demand.
High-net-worth individuals and local buyers were eager to secure homes, but there was a shortage of ready properties. Adding to the demand, Dubai's population was booming, with nearly 100,000 new residents arriving between January and August 2024. This influx of people further intensified the need for housing.
Developers were quick to respond to this demand by launching new projects at a rapid pace. For example, in 2023, Damac Properties introduced 20 new developments. By 2024, Dubai was expected to deliver over 38,000 new homes, providing buyers with a wide array of options.
This wave of new projects made off-plan properties highly attractive to buyers. With so many choices available, purchasing a property before its completion became a popular option. The appeal of off-plan properties was further enhanced by the potential for customization and the opportunity to secure a home at a lower price before market values increased.
Sources: Empire HFBB, The Luxury Playbook, Golden Bee Estate, Off Plan DXB
4) Dubai Marina made up nearly 12% of all property sales in Dubai in 2024
Dubai Marina is a top choice for property buyers, thanks to its prime waterfront location and luxurious amenities.
In 2024, the area saw a remarkable surge in property sales, especially in the secondary market. According to fäm Properties, Dubai Marina led the re-sale market with 4,924 transactions worth Dhs15.2 billion, highlighting its significant role in Dubai's real estate scene.
Overall, Dubai's property market experienced a 36% increase in sales volumes and a 27% rise in value compared to 2023. This boom was fueled by residency incentives, visa reforms, and attractive payment plans that drew in foreign investors.
Dubai Marina alone accounted for nearly 12% of all property sales in Dubai, underscoring its appeal to both investors and residents.
With its vibrant lifestyle and strategic location, Dubai Marina continues to be a magnet for property buyers looking for high rental yields and a luxurious living experience.
Sources: Gulf Business, D&B Dubai
5) By 2025, over 70% of residential developments in Dubai are expected to feature sustainability-focused elements
In 2025, over 70% of residential developments in Dubai are set to feature sustainability-focused elements.
This shift towards eco-friendly living has been gaining momentum, with developers increasingly incorporating energy-efficient designs and solar panels into their projects. The use of sustainable building materials is becoming the norm, reflecting a broader commitment to environmental responsibility.
In 2023 and 2024, there was a clear move towards using recycled materials like steel and bamboo, alongside low-carbon concrete. These choices not only minimize environmental impact but also support the creation of net-zero energy buildings, which are becoming more common in the city.
Vertical farming is another exciting development, appearing in both residential and commercial spaces. This innovation not only promotes sustainability but also offers a fresh approach to urban agriculture, making it a popular feature in new developments.
Smart city technologies are also transforming the real estate landscape. By 2025, many properties will boast AI-powered home automation and smart energy systems, appealing to tech-savvy buyers who value convenience and environmental consciousness.
These advanced technologies enhance security and efficiency, making them attractive to those looking to reduce their carbon footprint. The integration of such systems is a testament to Dubai's commitment to leading the way in sustainable urban living.
Sources: Strada UAE, Green.org, Tenco Homes
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6) In 2024, the average property transaction value in Abu Dhabi exceeded AED 2.5 million
The average transaction value for properties in Abu Dhabi in 2024 was over AED 2.5 million.
In 2024, the total property transaction value in Abu Dhabi hit AED 47.92 billion, spread over 14,662 deals. This means each transaction was quite significant. Residential properties were a major part of this, making up 66% of the volume and 53% of the total value, with 9,707 deals totaling AED 25.6 billion.
Off-plan properties were a big hit, contributing to 63.8% of the total residential sales transaction value, which amounted to AED 16.34 billion. This shows that new developments and future projects were very appealing to buyers, boosting the average transaction value.
Abu Dhabi's property market saw steady growth in 2024, with areas like Yas Island and Al Reem Island becoming popular hotspots. This growth was driven by strong demand and new developments, likely pushing up transaction values.
Sources: The Finance World, Economy Middle East, Zawya
7) By 2025, at least 40% of new developments in Dubai will offer flexible payment plans
In 2025, at least 40% of new developments in Dubai are offering flexible payment plans.
These plans are reshaping the real estate market by making property ownership more accessible. With extended repayment periods and lower monthly installments, more people can now consider buying a home. This is especially beneficial for those who might not have the full amount ready upfront.
One standout option is the 0.5% payment plan over 10 years. This plan allows buyers to pay small amounts monthly, making it a viable choice for mid-income earners and first-time buyers. It's a game-changer for those who previously found property ownership out of reach.
Dubai's real estate market is on the rise, with property values increasing and demand remaining strong. Developers are keen to tap into this growth by focusing on sustainable and affordable housing options. This aligns perfectly with the trend of offering flexible payment plans.
As the expatriate population in Dubai continues to grow, there's a clear need for housing solutions that cater to diverse financial situations. Developers are responding by creating more inclusive and flexible payment options, ensuring that more people can invest in property.
These flexible payment plans are not just a trend; they are becoming a standard in the market. By 2025, they will be a key feature in new developments, reflecting the evolving needs of buyers in Dubai.
Sources: UAE Offplan, MSK Real Estate, Damac Properties
8) UAE's population growth of 1.2% in 2024 boosted housing demand
The UAE's population grew by 1.2% in 2024, fueling a surge in housing demand.
This increase is largely due to the UAE's open-border-for-work policy and expat-friendly laws, which have attracted a significant number of people to live and work in the country. As a result, the real estate market has seen notable changes.
In Abu Dhabi, apartment prices rose by 6.2% and villa prices by 3.9% in the second quarter of 2024. Meanwhile, Dubai experienced even more dramatic increases, with apartment prices jumping by 20.7% and villa prices by 24.3%.
These price hikes reflect the growing demand for housing, driven by the influx of new residents. The UAE's strong government policies and economic diversification have played a crucial role in supporting this trend, ensuring a positive outlook for the real estate market.
By the end of 2024, the real estate market was projected to reach a value of $681 billion, highlighting the sector's robust growth and development. This growth is a testament to the UAE's strategic planning and adaptability in the face of increasing demand.
Sources: Global Media Insight, CBRE UAE Real Estate Market Review
We have made this infographic to give you a quick and clear snapshot of the property market in the UAE. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Properties near Dubai’s Expo City experienced over 8% price growth in 2024
In 2024, properties near Dubai’s Expo City saw a price growth of over 8%.
Expo City Dubai, which evolved from Expo 2020, transformed into a bustling hub for business, culture, and living. This change made it a prime spot for investment, attracting both investors and residents with its business-friendly environment and modern infrastructure.
Throughout 2024, the real estate market in Dubai showed strong performance, with a significant increase in property transactions and values. Buyers were further incentivized by attractive payment plans, like the 50/50 post-handover options, making it easier to invest.
The luxury segment also contributed, with a notable rise in high-end property transactions. This reflects a growing demand for luxury developments, which played a part in driving the 8% price growth near Expo City.
These factors combined to create a dynamic market environment, where both local and international buyers found opportunities. The area’s appeal was further enhanced by its strategic location and the promise of future growth.
As a result, Expo City became a focal point for investors looking to capitalize on the thriving real estate market, with its unique blend of modern amenities and cultural attractions.
Sources: Dubai Real Estate Market Overview And Analysis (2024), All investor eyes on Expo City Dubai in 2024
10) Over 30% of UAE homeowners refinanced their mortgages in 2024 due to lower interest rates
In 2024, over 30% of UAE homeowners opted to refinance their mortgages due to lower interest rates.
The UAE Central Bank's decision to cut interest rates, following the US lead, made mortgage rates drop significantly. This was a game-changer for those with variable interest rate loans, as they could now enjoy lower monthly payments. The appeal of refinancing was clear, and many jumped at the chance to save money.
Refinancing wasn't just a trend; it was a smart financial move. While exact numbers are elusive, the buzz was undeniable. Freddie Mac even predicted a 48% rise in refinancing activities for 2024, thanks to these favorable rates. Homeowners were keen to take advantage of the situation.
The UAE real estate market was thriving, with strong demand and increased activity across various regions. This boom, coupled with the attractive interest rates, made refinancing an enticing option for many. It was a time of opportunity for those looking to optimize their mortgage terms.
Homeowners were not just reacting to lower rates; they were strategically positioning themselves in a dynamic market. The combination of a booming real estate sector and reduced interest rates created a perfect storm for refinancing. It was a chance to secure better financial footing in a rapidly evolving landscape.
As the market continued to grow, the decision to refinance became more than just a financial strategy; it was a way to capitalize on the current economic climate. Homeowners were eager to maximize their investment potential and take advantage of the favorable conditions.
Sources: Gulf News, CBRE, iEmergent
11) Around 25% of residential transactions in Dubai in 2024 were over AED 10 million
In 2024, about 25% of residential transactions in Dubai were valued above AED 10 million.
This impressive figure is largely due to the significant growth in the luxury segment of the real estate market. According to The Luxury Playbook, there was a remarkable 47% increase in luxury sales transactions over AED 10 million compared to the previous year.
The surge in high-end property demand aligns with the overall trend of increased transaction volumes and values in Dubai's real estate market. Luxury transactions, as a subset of all residential transactions, played a crucial role in boosting the percentage of deals above AED 10 million.
The broader market context supports this trend, with record transaction volumes and values being reported for 2024. This environment of growth and demand for luxury properties helps explain why such a substantial portion of transactions were in the high-value category.
Dubai's real estate market has been thriving, with record-breaking AED 522 billion in transactions for 2024, as reported by Kane Bridge News ME. This growth reflects a strong appetite for luxury living and investment in the city.
As more buyers seek high-end properties, the luxury segment continues to drive the market, making it a prime time for those considering investing in Dubai's real estate.
Sources: The Luxury Playbook, Kane Bridge News ME
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12) Beachfront property demand in the UAE is expected to rise by 10% in 2025
In 2025, the demand for beachfront properties in the UAE is projected to increase by 10%.
The UAE is a magnet for real estate investment, drawing in high-net-worth individuals and expatriates who crave luxury. In 2023 and 2024, there was a noticeable uptick in interest for high-end properties, especially luxury villas and beachfront homes.
Beachfront properties are not just luxurious; they are also seen as affordable, making them a hit with both local and international buyers. Hotspots like Palm Jumeirah and Jumeirah Bay Island are buzzing with activity, driving this trend further.
The UAE's investment climate is incredibly favorable, thanks to strategic government policies. The Golden Visa scheme, for instance, offers renewable 10-year residency visas to those investing at least AED 2 million in real estate, attracting global investors.
Sources: Rose Island Real Estate, Tenco Homes, Top Luxury Property
13) Premium apartment rents in Abu Dhabi rose by at least 4% in 2024
In 2024, rents for premium apartments in Abu Dhabi increased by at least 4%.
This rise is part of a broader trend. According to Cushman & Wakefield Core, average apartment rents in Abu Dhabi jumped by 6.6% year-on-year during the second quarter of 2024. This general increase in the rental market likely influenced the premium segment as well.
Moreover, the Dubizzle Abu Dhabi Rental Market Report for the first half of 2024 revealed a 14% surge in the average asking rent for luxury apartments. This significant hike in the luxury sector points to strong demand, which could have pushed up rents for premium apartments.
Adding to this, Zawya's Q3 2024 Highlights noted strong demand and impressive returns in Abu Dhabi's luxury real estate market. This demand likely contributed to the rising rents for premium apartments.
These factors combined suggest a robust rental market in Abu Dhabi, with premium apartments experiencing notable rent increases due to heightened demand and market dynamics.
Sources: Cushman & Wakefield Core, Dubizzle Abu Dhabi Rental Market Report H1 2024, Zawya Q3 2024 Highlights
14) In 2024, over 15% of new developments in Dubai were branded residences with luxury hotel partnerships
In 2024, over 15% of Dubai’s new developments were branded residences with luxury hotel partnerships.
Dubai's real estate market is buzzing with excitement as branded residences are on the rise, showing a 44% increase in transaction volumes compared to the previous year. These properties are not just homes; they offer a unique blend of luxury and lifestyle that sets them apart from non-branded options.
In the first half of 2024 alone, 5,592 units were sold, contributing to a total transaction value of AED 28.8 billion. Buyers are drawn to the promise of quality assurance and the exclusive lifestyle that comes with these branded residences.
The market has seen significant growth, expanding to over 120 developments by 2024, a jump from just 69 in 2022. This expansion is fueled by prestigious brands like Armani, Fairmont, and Bulgari, which enhance property value through their exceptional service and design.
These branded residences are more than just a place to live; they offer a lifestyle experience that is hard to match. The involvement of luxury hotel brands ensures that residents enjoy top-notch amenities and services, making these properties highly desirable.
As the market continues to grow, branded residences are becoming a significant part of Dubai's real estate landscape, offering a unique blend of luxury and lifestyle that appeals to discerning buyers.
Sources: Spears WMS, Morgans Realty, Gulf Business
We made this infographic to show you how property prices in the UAE compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) In 2025, secondary market transactions in the UAE are set to surpass off-plan sales for the first time in five years
In 2025, the UAE's real estate market will experience a major shift, with secondary market transactions surpassing off-plan sales for the first time in five years.
This change is happening because many construction projects are finally wrapping up, which means more ready-to-move-in properties are available. Buyers are leaning towards these existing homes because they can move in right away and face less risk compared to buying off-plan.
Another factor is the easier access to mortgages for both residents and investors, making it simpler to buy these ready properties. This financial ease is boosting demand in the secondary market, reinforcing the trend.
People are increasingly drawn to the idea of owning a home they can see and touch, rather than waiting for a construction project to finish. This shift in preference is a big reason why secondary market sales are expected to rise.
With more properties available and financial options improving, the UAE's real estate landscape is set for a transformation. Buyers are finding it more appealing to invest in properties that are already built, reducing the uncertainty that comes with off-plan purchases.
As the market evolves, the focus is clearly moving towards existing properties, marking a new era in the UAE's real estate sector. This trend is reshaping how people buy homes in the region.
Source: Tenco Homes
16) By the end of 2024, residential property prices in Dubai rose by 6% on average
By the end of 2024, Dubai saw a 6% increase in residential property prices on average.
In early 2024, the Residential Property Price Index (RPPI) revealed a strong year-on-year growth, with apartment prices surging by over 20% and villa prices climbing more than 22%. This surge highlights a robust demand for homes, driving the overall price hike.
The luxury market was a major player, with luxury sales over AED 10 million jumping by 47% in the first half of 2024. These high-value deals significantly boosted the city's average property prices.
Dubai's real estate market showed impressive resilience, marked by a record-breaking number of transactions. The total sales value saw a substantial rise, reflecting a thriving and expanding sector.
For those considering a property purchase, these trends indicate a dynamic market with opportunities, especially in the luxury segment. The demand for high-end properties is a key driver of the price increases.
As the market continues to evolve, potential buyers should keep an eye on these trends to make informed decisions. The combination of strong demand and high-value transactions suggests a promising outlook for investors.
Sources: CBRE, Knight Frank, The Luxury Playbook
17) Sales transactions in Dubai Hills Estate rose by 9% in 2024 compared to the previous year
In 2024, Dubai Hills Estate recorded a 9% increase in sales transactions compared to the previous year.
This uptick is part of a broader trend in the Dubai real estate market, where transaction volumes and values surged significantly. Across the city, the total number of transactions hit a record-breaking 180,987, with a combined value of AED 522.5 billion.
Off-plan sales were a standout, making up 60.5% of all transactions, a jump from 43.6% the year before. This shift indicates a growing confidence in future developments and a strong appetite for new projects.
Luxury developments, like Dubai Hills Estate, have been at the forefront of this boom. These areas are in high demand, attracting both investors and buyers, which has contributed to the increase in transaction volumes and values.
Investors are particularly drawn to these upscale areas, seeing them as lucrative opportunities. The demand for luxury properties has been a key driver in the market's overall growth.
As a result, the real estate landscape in Dubai is evolving, with high-end developments playing a crucial role in shaping the market's future.
Sources: Zawya, The Luxury Playbook, Knight Frank
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.