Dubai Real Estate Ends 2024 on a High: Key Takeaways from the December 2024 Property Monitor Report
- Stephen James Mitchell
- Feb 7
- 8 min read
Updated: Feb 11
Dubai’s real estate sector closed out 2024 with another record-breaking performance, cementing its reputation as one of the world’s most resilient and dynamic property markets. As the year came to an end, the December 2024 Property Monitor Report revealed strong gains in property prices, surging sales transactions, and an unprecedented number of off-plan developments, highlighting the sector’s sustained momentum.
Despite shifting global economic conditions, Dubai’s property market continued to thrive, driven by high investor confidence, strategic government initiatives, and a booming luxury segment.
Property prices saw steady appreciation, while sales volumes climbed to historic highs, demonstrating robust demand from both domestic and international buyers. Meanwhile, developers responded to this demand by launching a record number of off-plan projects, further reinforcing Dubai’s appeal as a premier real estate investment hub.
But what do these record-setting numbers really mean for the future of Dubai’s property sector? Are price gains sustainable? How will the market balance its rapid expansion with long-term stability?
In this article, we take a deep dive into the key trends shaping Dubai’s real estate landscape, exploring the latest insights from the December 2024 Property Monitor Report and what they reveal about the road ahead in 2025.
Steady Price Growth Amidst Market Resilience
According to the December 2024 Property Monitor Report, Dubai’s property prices saw a 0.88% month-on-month increase, reaching AED 1,493 per square foot. This marks a 16.52% year-on-year increase, signaling continued confidence among investors and end-users.
The report notes that this price appreciation cycle has now lasted 50 months, with a stable monthly growth rate of 1.22%. This moderate but steady rise reflects a sustainable market environment rather than speculative price spikes.
Record-High Sales Transactions in December
December 2024 saw 15,108 property transactions, a 4.3% increase from November, making it the strongest December on record. While transaction volumes were slightly lower than October’s peak, the year ended with a total of 181,131 transactions, surpassing 2023’s 133,673 by 35.5%.
Residential properties, including apartments, villas, and townhouses, accounted for 92.8% of all sales, while commercial real estate, vacant land, and office spaces also saw healthy activity.
The December 2024 Property Monitor Report attributes this sustained transaction growth to Dubai’s investor-friendly policies, strong economic outlook, and a continuous influx of international buyers.
Off-Plan Market Expansion Surpasses Expectations
Dubai’s off-plan segment continued to dominate in December, with 9,179 off-plan Oqood transactions, marking a 7.4% increase from the previous month. Off-plan sales now represent 69.9% of the market, further solidifying their role in driving Dubai’s real estate expansion.
For 2024, over 145,000 new off-plan units were launched, surpassing the previous year’s 96,000. The total anticipated gross sales value of these projects exceeded AED 360.1 billion, reflecting the growing confidence of developers and investors alike.
The report also highlights a shift in the off-plan sector, with more resales occurring before project completion. This signals increased liquidity but also warrants close monitoring to prevent speculative overheating.
Mortgage Market Adjustments and Outlook for 2025
The mortgage market saw a 3.3% decline in December, with 3,871 loans recorded. Despite this, total mortgage volumes for 2024 reached an all-time high of 41,518 loans, an 18.2% year-on-year increase.
Notably, mortgage refinancing and equity release loans rose by 10.4%, indicating that buyers are adjusting their financial strategies amidst shifting interest rates. With potential rate cuts expected in 2025, borrowing conditions could improve, leading to renewed mortgage activity in the new year.
Luxury Real Estate Sees Unwavering Demand
Dubai’s luxury property market remained a major growth driver in 2024, with Palm Jumeirah, Emirates Hills, and Downtown Dubai witnessing soaring demand. High-net-worth individuals (HNWIs) and institutional investors continue to view Dubai as a premier destination for ultra-luxury real estate, thanks to the emirate's tax-free environment and global appeal.
The December 2024 Property Monitor Report notes that the demand for high-end villas and waterfront properties has resulted in limited availability, further driving up prices in this segment.
Challenges and Considerations for 2025
While the real estate market remains strong, the rapid increase in off-plan launches and rising property prices could present challenges if demand fails to keep pace. Analysts recommend careful monitoring of supply and absorption rates in 2025 to prevent oversaturation.
Additionally, infrastructure and urban planning must evolve to accommodate the city’s growing population and increasing housing demand. Sustainable development initiatives and smart city planning will be key to maintaining Dubai’s long-term real estate appeal.
Looking Ahead: 2025 Market Predictions
As 2025 begins, Dubai’s real estate market stands poised for continued strength and stability, supported by a combination of robust investor sentiment, strategic government policies, and sustained economic expansion. With initiatives such as the Dubai Economic Agenda (D33) and the Real Estate Sector Strategy 2033, the emirate is committed to long-term real estate growth, fostering a market that remains attractive to both local and international investors.
These initiatives aim to enhance infrastructure, drive innovation in property development, and create a regulatory environment that supports sustainable growth, ensuring Dubai’s status as a premier global real estate hub.
According to the December 2024 Property Monitor Report market fundamentals remain strong, but price appreciation is expected to moderate following the rapid gains of the past four years. While double-digit annual growth has characterized recent trends, analysts predict a more balanced trajectory in 2025, where price increases may stabilize at a sustainable pace, preventing speculative overheating.
At the same time, transaction volumes are likely to remain high, driven by steady demand across luxury, mid-tier, and affordable segments. With over 145,000 off-plan units launched in 2024, a significant number of these properties will reach completion in 2025 and beyond, further stimulating market activity as handovers generate increased resale transactions. Investors and end-users alike will be keen to capitalize on new opportunities, particularly in high-growth areas with strong rental yields and capital appreciation potential.
Another key factor to watch is mortgage activity, which saw record-breaking volumes in 2024 despite higher borrowing costs. With interest rate cuts anticipated in 2025, the mortgage sector is expected to benefit, making financing more accessible for first-time buyers and end-users. Lower borrowing costs could unlock new demand, especially for ready properties, and further contribute to market liquidity.
While Dubai’s real estate sector continues to be defined by resilience and high demand, experts caution that the sheer volume of new supply entering the market in 2025 will test the pace of absorption. Sustaining investor confidence and maintaining a healthy equilibrium between supply and demand will be critical in ensuring long-term market stability.
Ultimately, 2025 is set to be a pivotal year—one where Dubai's real estate market transitions from a phase of explosive growth to a more mature, measured expansion. With a strong policy framework, economic diversification, and sustained global interest, the emirate is well-positioned to navigate challenges while seizing new opportunities, reinforcing its standing as one of the world’s most dynamic real estate destinations.
FAQs: Dubai Real Estate Market Insights from the December 2024 Property Monitor Report
1. How did Dubai’s property prices perform in December 2024?
According to the December 2024 Property Monitor Report, property prices in Dubai rose by 0.88% month-on-month, reaching AED 1,493 per square foot. This represents a 16.52% year-on-year increase, reflecting sustained confidence in the market and strong demand from investors and end-users.
2. How long has Dubai’s property price appreciation cycle lasted?
The current price appreciation cycle has now extended to 50 months, with an average growth rate of 1.22% per month. This steady increase indicates a healthy, sustainable market environment, rather than speculative price surges.
3. Were there record-high sales transactions in December 2024?
Yes, December 2024 recorded 15,108 property transactions, marking a 4.3% increase from November. This made it the strongest December on record, further reinforcing Dubai’s real estate market momentum.
4. How did overall property sales in 2024 compare to previous years?
Dubai recorded 181,131 total transactions in 2024, a 35.5% increase compared to 2023 (which had 133,673 transactions). This growth highlights increasing market confidence and continued demand from both local and international investors.
5. What was the share of residential and commercial property sales in December?
Residential properties—including apartments, townhouses, and villas—dominated the market, accounting for 92.8% of total sales. Commercial properties, vacant land, and office spaces also saw strong activity.
6. How did the off-plan market perform in December 2024?
Off-plan transactions remained strong, with 9,179 Oqood transactions recorded, reflecting a 7.4% increase from the previous month. This further expanded off-plan’s market share to 69.9%, showcasing its key role in Dubai’s real estate growth.
7. How many off-plan developments were launched in 2024?
Developers introduced over 145,000 new off-plan units in 2024, surpassing the 96,000 units launched in 2023. The total anticipated sales value of these projects exceeded AED 360.1 billion, highlighting strong investor confidence.
8. Has off-plan resale activity increased?
Yes, off-plan resales have grown significantly, reaching 29.7% of total resale transactions, up from a 12-month rolling average of 25.3%. This indicates increased liquidity in the off-plan market and rising investor interest in properties before completion.
9. How did mortgage activity perform in December 2024?
Mortgage transactions declined by 3.3% in December, with 3,871 loans recorded. However, total mortgage volumes for 2024 reached a record 41,518 loans, an 18.2% year-on-year increase.
10. What factors influenced mortgage activity?
The mortgage sector saw a shift in financing strategies, with a 10.4% increase in refinancing and equity release loans. Buyers are adapting to current interest rates, while potential rate cuts in 2025 could boost mortgage demand further.
11. How did Dubai’s luxury property market perform in 2024?
Dubai’s luxury real estate sector remained one of the market's strongest segments, with Palm Jumeirah, Emirates Hills, and Downtown Dubai leading in demand. High-net-worth individuals (HNWIs) and international investors continue to favour Dubai’s tax-free luxury market, driving up prices and reducing inventory.
12. What challenges could impact Dubai’s real estate market in 2025?
Despite strong performance, the market must balance record-high off-plan launches with sufficient demand to prevent oversupply. Additionally, infrastructure development and sustainable urban planning are essential to support Dubai’s growing population and real estate expansion.
13. Will Dubai’s property prices continue to rise in 2025?
According to the December 2024 Property Monitor Report, price growth is expected to moderate in 2025 after four years of rapid increases. Analysts predict a more sustainable growth trajectory, ensuring long-term market stability.
14. What are the key drivers of transaction volumes in 2025?
Transaction volumes are expected to remain high, fueled by demand in luxury, mid-tier, and affordable segments. With over 145,000 off-plan units launched in 2024, a wave of project completions in 2025 could further boost resale activity.
15. Will interest rate cuts affect Dubai’s mortgage market in 2025?
Yes, anticipated rate cuts in 2025 could make financing more accessible for first-time buyers and end-users. Lower borrowing costs may increase demand for ready properties, contributing to overall market liquidity.
16. What should investors watch for in 2025?
Investors should closely monitor off-plan absorption rates, the impact of interest rate cuts, and supply-demand dynamics. Sustaining market confidence and ensuring a balanced real estate ecosystem will be key factors in Dubai’s long-term success.
17. Will Dubai’s real estate market maintain its global appeal in 2025?
Absolutely. Dubai remains one of the world’s top real estate investment destinations, thanks to the emirate's tax-free environment, economic stability, government-backed initiatives, and luxury property appeal. Strategic developments like the Dubai Economic Agenda (D33) will continue to drive growth and attract international investors.
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