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Top six developers drive Dubai housing market surge
With real estate experts predict an annual price growth of 5-8% and average rental yields of 7% for 2025, Dubai's residential market appears poised to sustain its growth cycle
- PUBLISHED: Wed 26 Feb 2025, 9:17 PM
Dubai’s residential market has experienced a remarkable surge, with registered transactions soaring by 55 per cent to 33,110 in the last quarter of 2024, compared to 21,405 transactions during the same period in 2023. This impressive growth has been driven by six leading developers, with Sobha Realty at the forefront.
The company led the market with 1,960 registered residential transactions, primarily fuelled by its flagship project, Sobha Orbis. Sales value for the quarter surged 44 per cent to Dh 65.23 billion, up from Dh 45.45 billion reported in October–December 2023, according to data from Square Yards, a prominent property portal.
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Following Sobha Realty, Azizi Developments recorded 1,158 transactions, bolstered by the performance of Azizi Venice. Damac Properties ranked third with 1,050 transactions, driven by its Damac ELO project. Binghatti Developers came in fourth, registering 700 transactions, with Binghatti Hills as its standout development.
“This growth in annual activity underscores strong buyer interest, while the slight quarterly adjustment indicates a steady and healthy market,” stated Square Yards in its report.
"Dubai’s residential real estate market continues its upward trajectory, supported by a solid regulatory framework, investor-friendly policies, and a maturing investment landscape. The latest figures reaffirm the city’s appeal, showcasing double-digit growth in both transaction volume and value,” said Rabiah Shaikh, Chief Business Officer and Principal Partner - Global Markets, Square Yards.
With real estate experts predicting annual price growth of 5-8 per cent and average rental yields of 7.0 per cent for 2025, Dubai's residential market appears poised to sustain its growth cycle. Housing supply is projected to increase by approximately 182,000 units between 2025 and 2026, as a significant number of properties sold in 2022-2023 are set for completion. Of this, around 76,000 units are expected to be completed in 2025.
Jayakrishnan Bhaskar, a Dubai-based property consultant, noted that investors are increasingly purchasing higher-priced properties as housing prices rise, subsequently renting them out at elevated rates for passive income. Demand for rentals remains consistently high among tenants, catering to both short- and long-term needs.
Shaikh emphasised that competitive advantages such as streamlined property acquisition processes, favourable visa and mortgage frameworks, tax incentives, and attractive rental yields have solidified the emirate’s status as a global property investment hub.
“Looking ahead, we see a clear roadmap for sustained growth, supported by strategic initiatives like the Dubai Real Estate Sector Strategy 2033. The ambition to double the sector’s contribution to GDP, enhance homeownership, and push market value beyond Dh 1 trillion underscores confidence in the long-term potential of Dubai’s real estate market, with the residential segment at its core,” he added.
In terms of registered home sales value, Sobha Realty again led the way with Dh4.297 billion, bolstered by the strong performance of Sobha Orbis. Emaar Properties followed in second place with Dh1.965 billion, largely attributed to Emaar Marina Cove. Damac Properties secured third place with Dh1.464 billion, supported by Damac Lagoon Views, while Azizi Developments placed fourth with Dh1.370 billion, driven by Azizi Venice.
The average registered home sales value decreased to Dh1.97 million, reflecting a 7.0 per cent decline compared to the previous year. This suggests a trend toward more affordable residential properties, despite high transaction volumes.
Residential units below 1,000 sq. ft. dominated 75 per cent of transactions in the December quarter, up from 61 per cent in the same period in 2023. In contrast, units larger than 1,000 sq. ft. declined to 25 per cent from 39 per cent in the prior year.
“This shift towards compact living spaces is reflected in transaction values, as properties priced under Dh 2 million accounted for 74 per cent of the market in the last quarter, rising from 70 per cent in the same period the previous year,” noted the report.
Square Yards’ data indicates a clear market orientation towards low- and mid-tier segments, with premium properties in the Dh 3-5 million range and above Dh 5 million experiencing a slight decline.
Among micro-markets, Dubailand led with a 28 per cent share of the total market, followed by Jumeirah with 22 per cent. Mohammed Bin Rashid City ranked third, contributing 9.0 per cent to the overall volume. Together, these three micro-markets accounted for 59 per cent of Dubai’s total registered residential transactions.
In terms of registered home sales value, Dubailand contributed 24 per cent of the total, with Palm Jumeirah and Jumeirah following closely at 14 per cent and 13 per cent respectively. These three areas collectively represented 51 per cent of Dubai’s total registered home sales value for the quarter.
Locality-level analysis highlighted Business Bay and Jumeirah Village Circle (JVC) as prominent performers, with Business Bay leading in sales value and JVC topping transaction numbers. Other central Dubai micro-markets, including Dubai Marina, Downtown Dubai, and Al Barsha, also showed strong activity, while Bukadra and Dubai World Central demonstrated robust performance in the outer regions.