The UAE real estate secondary sales market is booming with volumes and value increasing for apartments and villas.
The Dubai real estate is thriving, with secondary sales of properties reaching AED76.34bn ($20.8bn) in the first half of the year, according to market analysis by a leading specialist.
Dubai continues to strengthen its global appeal as it further solidifies its position as one of the most dynamic and sought-after residential markets, according to a report by Metropolitan Homes.
The report titled “H1 2024 Residential Resale Market Review 2024” provides an in-depth review and highlights an exceptional performance in Dubai’s secondary sales market (off-plan and secondary resale).
Dubai real estate secondary sales
Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Homes, said: “Dubai’s real estate market has shown remarkable strength and growth in the first half of 2024. During this period, the record-breaking sales volume and price increases demonstrate Dubai’s thriving economy and its continued appeal as a global real estate destination.
“As Dubai continues to benefit from its global standing as an attractive international city, we are confident about the future growth of the real estate market, driven by factors such as increasing foreign investment, infrastructure development, and the city’s ongoing efforts to attract talent and businesses.”
Dubai’s residential resale market has seen significant growth. Transaction volumes increased by 17.8 percent year-on-year to 27,949 and transaction values rose by 23.1 percent to AED76.34bn ($20.8bn).
Despite the unprecedented floods that impacted the city in April, the market quickly rebounded to record-breaking levels. May 2024 set a new benchmark with 17,139 residential resale transactions – the highest monthly total ever recorded. This surge highlights the market’s resilience and continued growth momentum.
Key highlights from the report, with comparisons to H1 2023, include:
- Average resale prices: The average residential resale price per square foot rose to AED1,545 ($421), a nearly 7 percent increase compared to H1 2023
- Demand for apartments: Apartments remain the most sought-after residential option in the city, accounting for 77 percent of all resale transactions. Apartment sales totaled 21,578 units, a 20 percent increase from the previous year, with a total value of AED39.99bn ($10.9bn). The average apartment price rose 5.5 percent to AED1,592 ($433) per square foot. Palm Jumeirah remains the most sought-after area, but Dubai South and Dubai Studio City saw a surge in online searches. The strong demand for apartments reflects Dubai’s appeal for those seeking low-maintenance, high-quality living environments
- Villa and townhouse growth: The demand for villas and townhouses has also surged. Villa resale values increased by 22.6 percent to AED24.6bn ($6.7bn), with 2,378 transactions. Townhouse resales saw a 37.4 per cent increase to AED11.74bn ($3.2bn), from 3,993 transactions. The average residential villa/townhouse price per square foot rose 11.3 percent to AED1,444 ($393). This growth indicates a rising demand among families and long-term residents. The doubling of school students in Dubai since 2008 underscores the growing trend of expats seeking to raise families in the emirate
- Increased demand for specific areas: Jumeirah Islands, Mohammed bin Rashid City, and Dubai South emerged as highly sought-after locations for property sales, driven by their strategic development and amenities
The top three apartment sales in H1 2024 were:
- A four-bedroom apartment in Downtown Kempinski Boulevard sold for AED80m ($21.8m)
- A four-bedroom apartment in Dubai Water Canal’s The Four Seasons sold for AED72m ($19.6m)
- A six-bedroom apartment in Downtown’s The 118 sold for AED65m ($17.7m)
The most-searched areas for apartments in the first half of the year, were Jumeirah Village Circle (JVC), Dubai Marina, Business Bay, and Downtown Dubai.
The most-searched areas for villas and townhouses were Al Furjan, Arabian Ranches 3, DAMAC Hills 2, and Dubai Hills Estate.
The top three villa sales in H1 2024 were:
- Jumeirah Bay Island AED240.5m ($65.5m)
- Jumeirah Bay Island AED160m ($43.6m)
- Jumeirah Bay Island AED155m ($42.2m)
Meanwhile, the top three townhouse sales in the same period were:
- Umm Suqeim, Umm Suqeim 2 AED34m ($9.3m)
- Jumeirah Bay Island, Villa Almalfi AED31m ($8.4m)
- Jumeirah Village Circle, JVC District 16 AED25m ($6.8m)
Despite global uncertainties, the city offers a stable and attractive environment for investors and end-users. The market’s strong fundamentals and strategic position make it a compelling choice.
The city’s rising average sales and rental prices indicate a shift towards mid-market properties, aligning with the Urban Master Plan 2040 and the growing population.
According to Metropolitan Homes, the key areas to watch include Dubai South (EMAAR South, Expo City) and Dubailand (The Valley by EMAAR, The Oasis by EMAAR) with increased investments and more developments upcoming during the remainder of the year and beyond.
