Dubai’s Re-Sale Property Market Hits Record $16.33 Billion in Profits for 2024

Dubai’s real estate sector continues to cement its position as a global powerhouse, with the re-sale property market delivering a record AED 60 billion (approximately $16.33 billion) in profits for investors in 2024. This achievement represents 32% of the city’s highest-ever total re-sale value of AED 188.1 billion, marking a milestone in the emirate’s property market history.

Palm Jumeirah: A Hotspot for Capital Gains

Leading the charge in capital gains is Palm Jumeirah, which generated an astonishing AED 6.48 billion in profits, showcasing its continued appeal to high-net-worth individuals and international investors. Other key areas contributing to the remarkable profits include Dubai Marina, Dubai Hills Estate, Downtown Dubai, and Business Bay. These iconic locations remain highly sought after for their luxury amenities, strategic locations, and investment potential.

Key Drivers of Market Growth

Several factors have propelled the unprecedented growth of Dubai’s re-sale property market in 2024:

1. Shift to Ready Homes: Buyers have shown a strong preference for ready-to-occupy properties, leading to a 14% year-on-year increase in transaction volume, with 61,100 transactions recorded.

2. Attractive Rental Yields: Dubai’s competitive rental yields continue to draw investors looking for steady returns.

3. Enhanced Infrastructure: Ongoing developments in infrastructure across the emirate have significantly boosted the desirability of residential properties.

Firas Al Msaddi, CEO of fäm Properties, emphasized that these capital gains underscore the market’s dynamism and Dubai’s robust regulatory framework. He noted that the profits would likely encourage reinvestment, attracting new capital and bolstering the market’s long-term resilience.

Record-Breaking Year for Real Estate Transactions

Dubai’s overall real estate market set new benchmarks in 2024:

• Transaction Volume and Value: The market recorded 180,900 transactions worth AED 522.1 billion ($142.2 billion), a 36% increase in volume and a 27% rise in value compared to 2023.

• Primary Market Growth: Sales from developers grew by 30% year-on-year, reaching AED 334.1 billion ($91 billion), reflecting strong demand for off-plan properties.

• Price Appreciation: The average price per square foot increased by 10% to AED 1,600 ($436), indicating steady appreciation in property values.

Looking Ahead: A Bright Future for 2025

Dubai’s real estate market’s stellar performance in 2024 sets a promising stage for 2025. With substantial capital gains and a robust infrastructure-led development strategy, the emirate is poised to attract even greater local and international investment. The continued focus on enhancing urban infrastructure and delivering world-class amenities will likely sustain Dubai’s position as a premier global property investment destination.

Investors and stakeholders can look forward to a year of growth and opportunity, driven by Dubai’s commitment to innovation and excellence in the real estate sector.