Dubai’s population has nearly touched the 4 million mark, piqueing interest in its realty market. The market is on the verge of a realty boom as significant investments flow in and strategic initiatives and reforms are rolled out.
The emirate’s realty sector has grown remarkably, creating new benchmarks in sales transactions and property values. In Q3 2024, the real estate sector recorded 50,423 sales transactions, showing a 37.9% YoY increase in volume. This translated to a total sales value of nearly $38.7 billion (i.e., AED 141.9 billion), demonstrating a 30.1% increase from 2023. These figures show Dubai’s continuous appeal to investors.
The city’s population growth remains a key driver of this realty boom. Dubai’s demographic expansion, with over 169,000 new residents added in 2024, has made the total population 3.8 million. This, in turn, has created a robust demand for residential options, particularly in the luxury segment; in early 2024, properties valued at over AED 10 million saw a 47% increase in transactions.
FDIs (i.e., Foreign Direct Investments) have been vital in fueling this growth. The first 6 months of 2024 saw a 55% increase in real estate investment, reaching approximately AED 412 billion; foreign direct investment accounted for 42% of these investments. Moreover, Dubai’s appeal to intercontinental investors continues to soar due to —
- ongoing infrastructure developments
- the city’s commitment to emerging as one of the most innovative and sustainable urban hubs globally
- government initiatives, including property law reforms and long-term visas
As Dubai’s population is set to reach 4 million, the realty sector is well-placed to capitalize on this growth. The Dubai Economic Agenda D33 outlines strategic plans for more smart city developments to draw and sustain significant interest from potential investors. With property prices reaching new heights (a 1.73% increase in October last year pushed the average cost to AED 1,473/sq. ft.), Dubai’s property market is set for sustained growth and improvement.
