Provident’s Dubai Sales Market Report Q3 2024

Dubai’s real estate market continues to gain momentum, driven by a rising wave of residents transitioning from rentals to homeownership. This shift has fueled financing transactions, especially in the villa and townhouse segments, as developers respond with new supply to meet the growing demand.

Provident’s Dubai Real Estate Market Report for Q3 2024 offers an in-depth look at the latest property price trends, providing valuable insights into how the market has evolved over the past three months. Dive into this report to uncover the key shifts in property prices, compare sales trends, and get a clear understanding of the dynamics shaping Dubai’s real estate landscape. Whether you're an investor or a prospective homeowner, this report offers everything you need to stay ahead in a rapidly changing market.

Highlights from Provident’s Dubai Real Estate Market Q3 2024

• Townhouse sales increased by 385%, with average prices rising 10.2% between Q3 2023 and Q3 2024.
  Despite the rapid growth in the sales market, rental yields remain attractive at 6-7%.
• Based on data from datafinder.com, Dubai Marina is the most searched area, accounting for 9.7% of all searches, followed by JVC (9.5%), Downtown Dubai (8.4%), Business Bay (7.2%), and Palm Jumeirah (4.6%).
• Total residential sales transactions (both off-plan and secondary) in Q3 2024 reached 47,068, marking a 68% increase compared to 2021.
• Demand for villas and townhouses remains high, with four-bedroom units making up 55% of townhouse sales and 33.2% of villa transactions.

Detailed Dubai Property Market Report Q3 2024

Dubai’s real estate market has shown remarkable growth over the past four years, reflecting increased buyer confidence and investor interest. Take a look at the total number of residential sales transactions (both off-plan and secondary) from Q3 2021 to Q3 2024:

• Q3 2021: 13,977 transactions with a total value of AED 32.26 billion
• Q3 2022: 22,912 transactions with a total value of AED 53.25 billion
• Q3 2023: 28,025 transactions with a total value of AED 78.63 billion
• Q3 2024: 47,068 transactions with a total value of AED 115.86 billion

As per the data, Dubai property sales increased by 68% between 2021 and 2024. Meanwhile, the average sale price per transaction grew by 6.6% during the same period. Additionally, the price per square foot rose from AED 1,244 in 2021 to AED 1,699 in 2024.

Resale and Ready Property Market – Q3 2024 Overview

The secondary market, which includes resale and ready properties, continues to thrive, especially in established communities. Let's check out the key trends in secondary markets, with a focus on apartments, townhouses, and villas.

Dubai Apartment Sales in the Secondary Market

In the secondary market, a total of 9,644 apartments were sold, with an average sale price of AED 1,567,127. When it comes to Dubai apartment sales Q3 2024, the average price per square foot stood at AED 1,413, with the typical apartment having a unit size of 1,040 sq ft. One-bedroom apartments dominated the market, making up 41.4% of all transactions.

 Additionally, a significant portion of these sales—17.9%—fell within the AED 1M to AED 1.5M price range, reflecting strong demand in this segment.

According to Provident’s Dubai Real Estate Market Q3 2024, the most popular apartments for sale in Dubai’s secondary market are: 

Dubai Townhouse Sales in the Secondary Market

A total of 6,701 townhouses were sold in the secondary market, with an average sale price of AED 3,072,231. The average price per square foot was AED 1,168. Four-bedroom townhouses emerged as the most popular choice, accounting for 55% of all sales. Additionally, 42.9% of transactions were priced between AED 3M and AED 5M, reflecting strong demand in this price range.

The most sought-after townhouses for sale in Dubai’s secondary market are:

Dubai Villa Sales in the Secondary Market

Now let’s have a look at the Dubai villa sales Q3 2024. A total of 1,172 villas were sold, with an average sale price of AED 10,476,005. The market showed a strong preference for four-bedroom villas, which made up 33.2% of all transactions. These villas had an average sale price of AED 9.54M, highlighting the demand for spacious, family-friendly properties in the higher price range.

Provident’s Q3 2024 report on Dubai's real estate market indicates that these areas are the top choices in the secondary market for villas for sale:

Off-Plan Market Performance in Q3 2024

In Q3 2024, Dubai’s off-plan market demonstrated robust growth, driven by rising buyer interest in new developments and customizable properties.

 Dubai Off-Plan Apartment Market

In the third quarter of 2024, a total of 11,628 off plan apartments were registered, with an average sale price of AED 1,642,073 and an average price per square foot of AED 1,497. The typical unit size averaged 1,028 sq ft. Studios and one-bedroom apartments dominated the market, with 21.3% of registrations being studios and 41.3% consisting of one-bedroom units. Additionally, 18.7% of the registered apartments were priced between AED 1M and 1.5M, while 12.3% fell within the AED 2M to 3M range, reflecting the appeal of mid-range investment opportunities.

As per Provident’s Dubai Real Estate Report Q3 2024, these are the leading areas for off-plan apartment registrations:

Dubai Off-Plan Townhouse Sales Overview

A total of 2,277 off plan townhouses were registered in Dubai in Q3 2024, with an average sale price of AED 3,015,693 and an average unit size of 2,427 sq ft. Three-bedroom townhouses made up 52.1% of the registrations, while 31.6% were four-bedroom units. Additionally, 42.8% of the sales were priced around AED 2M, indicating strong demand for townhouses within this price range.

Listed below are the areas with the highest number of off-plan townhouse registrations this quarter. 

Dubai’s Off-Plan Villa Market Insights

About 1,172 villas were registered in Q3 2024, with an average sale price of AED 10,476,005 and an average unit size of 5,431 sq ft. The majority of these off-plan villa sales consisted of four-bedroom units, accounting for 33.2% of registrations, followed by five-bedroom villas at 27.8%. Notably, 85.7% of the villa sales were priced above AED 3.2M, highlighting the strong demand for larger, high-end properties in the luxury segment.

According to Provident’s Dubai Real Estate Market Q3 2024 report, these are the top areas with the highest number of off-plan villa registrations this quarter.

Buyer Preferences and Search Trend for Q3 2024

The most searched areas for apartments reflect strong interest in prime locations, with Dubai Marina leading at 9.7% of searches, followed closely by Jumeirah Village Circle (JVC) with 9.5%, and Downtown Dubai at 8.4%. For townhouses and villas, Dubai Hills Estate tops the list with 6.3% of searches, followed by Al Furjan with 5.5%, and Palm Jumeirah with 5%, highlighting the popularity of these areas for buyers seeking spacious, upscale living options.

Future Supply Forecast

Dubai’s future real estate supply is aligned with the Dubai 2040 Urban Master Plan, which emphasizes sustainability, livability, and lifestyle-focused developments. Developers are strategically launching new projects to meet the growing demand for both residential and lifestyle communities.

• 2024: A total of 29,165 units are expected, including 6,493 townhouses and 3,358 villas, catering to the rising demand for family-friendly housing.
• 2025: Supply will increase to 72,508 units, with 15,000 villas and townhouses focused in popular areas such as Al Furjan and Arabian Ranches 3, appealing to both investors and end-users.
• 2026: The forecast predicts 86,840 units, concentrated in key locations like Arjan, Business Bay, and Dubai Hills Estate, reflecting the city's vision for mixed-use urban hubs with residential and commercial spaces.
• 2027: Developers will deliver 63,401 units, including 12,000 villas and townhouses in emerging areas such as The Valley and Nad Al Sheba, aimed at offering luxurious, spacious living in peaceful environments.

This supply strategy ensures that Dubai continues to attract residents and investors with a mix of urban and suburban housing options while supporting the city’s long-term goals of creating a sustainable and thriving metropolis.

Key Takeaways from Provident’s Dubai Q3 2024 Market Report

Provident’s Dubai Real Estate Market Report for Q3 2024 showcases robust growth, with both off-plan and resale properties driving significant transaction volumes. While off-plan developments attract buyers with customization options and new amenities, resale properties remain appealing for those seeking immediate occupancy. 

The introduction of large-scale developments with end-user considerations reflects developers' commitment to aligning with Dubai’s 2040 vision. Furthermore, attractive rental yields, investor-friendly policies, and competitive payback periods make Dubai a prime destination for both local and international investors. With supply expanding in response to the growing population, the market is well-positioned for sustained growth in the coming years.