Affordable properties are becoming a major force in Dubai’s real estate market as more people look to call the city their home, according to a recent report from Engel & Völkers Middle East.
The report highlights that properties under Dh1 million now account for 32.2% of total sales, up from 26.7% in October. Studios and one-bedroom apartments are seeing strong demand, solidifying apartments as the top asset class, making up over 84% of all sales transactions.
Top Communities in Sales:
- Jumeirah Village Circle: 1,035 units sold
- Jumeirah Village Triangle: 670 units sold
- Business Bay: 423 units sold
Dubai’s Real Estate Market Performance
The residential sector in Dubai continued its steady growth, recording a 15.4% year-over-year increase in November. Although sales transactions totaled 12,695, slightly lower than October’s record-breaking numbers, the market’s growth remains steady. Average property prices increased by a modest 0.38%, signaling a positive trend for sustainable growth.
Commercial Sector Sees Strong Results
Dubai’s commercial real estate sector also performed well, with the total sales value reaching Dh9.2 billion, a 3.1% increase compared to last year. Office sales jumped 24.2%, and average office prices saw an impressive 31.1% year-over-year rise, showing strong demand and limited supply for premium office spaces.
Rental activity followed a similar upward trend, with transaction volumes rising 21.9% compared to October. Average rents grew 18% year-over-year, led by office spaces that recorded a 28.1% rent increase. High demand for Grade A office spaces and strong competition continue to drive Dubai’s commercial market.
Top Communities for Commercial Transactions:
- Office Sales: Business Bay (119 units), Jumeirah Lakes Towers, Barsha Heights (TECOM)
- Top Rental Areas: Deira, Dubai Investment Park (DIP), and Bur Dubai
Expert Insights
Daniel Hadi, CEO of Engel & Völkers Middle East, shared his thoughts:
“Dubai’s real estate market shows exceptional strength and adaptability, with increasing demand for affordable and compact homes. This reflects a market that caters to a wide range of needs. The commercial sector is thriving as office spaces see strong demand and rising prices, solidifying Dubai as a key global business hub.”
He further added, “As Dubai’s economy grows and attracts businesses and residents, its real estate sector is on a steady upward path. November’s data underscores investor confidence and the market’s adaptability, positioning Dubai for even greater achievements as we move closer to 2025.”
