Dubai's real estate market continues its upward momentum, marking the fifth year of residential price growth with a 20% y-o-y increase in city-wide sales prices and an 18% y-o-y rise in rents.
Office Market - Q3 2024
Dubai's office market is experiencing record-high occupancy levels across the city, driven by demand that continues to outpace supply, with Grade A properties leading the trend.
- City-wide office occupancy levels are now at 91% while Grade A office stock is at a record high of 94%
- Sheikh Zayed Road (Trade Center Area 1) and Dubai CommerCity have experienced the highest increases in occupancy, reaching 98%, followed by Downtown Dubai at 97%, and both Dubai Design District and DIFC at 95%
- Strong demand and limited availability have led to a 19% year-on-year increase in office rents across the city, which are now at AED 165/sq. ft /year.
- The DIFC tops the list with the highest average office rents in the city, followed closely by One Central and Downtown Dubai.
- Despite new office project announcements, the Dubai office market is expected to remain undersupplied until 2027
Residential Market - Q3, 2024
Dubai’s residential market has entered its fifth year of upward trajectory, with a 20% year-on-year increase in city-wide residential sales prices and an 18% rise in rental prices.
- City-wide sales prices rose for the 17th consecutive quarter while rents rose for the 15th consecutive quarter
- Off-plan transaction volumes saw a 51% y-o-y increase while secondary market transactions increased by 19% y-o-y
- 22,900 units delivered YTD 2024, with 10,700 units anticipated in Q4 2024, bringing the yearly total to 33,600 units
- Project launches in Q3 2024 saw some levels of moderation marking only a 4% y-o-y increase
- The ultra-prime segment remains strong with a 41% y-o-y rise in the number of transactions
