Affordable properties priced under Dh1 million have emerged as the most sought-after segment in Dubai’s real estate market, accounting for 32.2% of sales in November, up from 26.7% in October, according to the latest report by Engel & Völkers Middle East.
The surge reflects a growing trend as more individuals and families choose to make Dubai their permanent home. Studios and one-bedroom apartments, in particular, have gained significant traction, solidifying apartments as the dominant asset class, representing 84% of total sales.
Top-Performing Communities
The leading areas by sales transactions in November include:
- Jumeirah Village Circle – 1,035 units
- Jumeirah Village Triangle – 670 units
- Business Bay – 423 units
The overall residential sector witnessed a 15.4% year-over-year increase, recording 12,695 sales transactions. While there was a slight cooling compared to October’s record-breaking figures, the market maintained its steady upward trajectory, with a modest 0.38% rise in average prices.
Commercial Real Estate Soars
Dubai’s commercial real estate market also demonstrated robust performance, with the total sales value reaching Dh9.2 billion, marking a 3.1% year-over-year increase. Notably:
- Office sales surged by 24.2%, driven by strong demand.
- Average office prices rose by 31.1%, highlighting limited supply and rising competition for premium spaces.
Rental activity mirrored this trend, with transaction volumes increasing 21.9% compared to October. Office spaces led the rental growth with a 28.1% rise in average rents, underpinned by high occupancy rates for Grade A properties.
Top areas for office transactions were:
- Business Bay – 119 units
- Jumeirah Lakes Towers
- Barsha Heights (TECOM)
For rental activity, Deira, DIP, and Bur Dubai led the way.
Market Resilience and Growth
Daniel Hadi, CEO of Engel & Völkers Middle East, noted that Dubai’s real estate market continues to show resilience and adaptability, catering to diverse investor and resident needs.
“The residential sector’s growth, particularly in affordable and compact options, reflects a maturing market, while the commercial sector’s performance reinforces Dubai’s status as a global business hub,” said Hadi.
He added, “As Dubai’s economy expands, attracting global businesses and residents, the real estate sector remains on a solid path for sustained growth. The November report reflects strong investor confidence and highlights the market’s potential for record-breaking achievements as we move into 2025.”
