Affordable properties are taking center stage in Dubai’s real estate sector, driven by growing demand from individuals looking to settle in the emirate, according to data released on Tuesday by Engel & Völkers Middle East, a leading real estate services provider.
The report revealed a significant increase in the share of properties priced under Dh1 million, which accounted for 32.2% of sales in November, up from 26.7% in October. This surge in demand was fueled by heightened interest in studios and one-bedroom apartments, reinforcing the dominance of apartments as the preferred asset class. Apartments made up over 84% of total sales during the month.
Top-performing communities in terms of sales transactions included Jumeirah Village Circle (1,035 units), Jumeirah Village Triangle (670 units), and Business Bay (423 units), reflecting a strong preference for affordable and centrally located neighborhoods.
Dubai’s residential sector recorded a 15.4% year-over-year increase in November, with 12,695 sales transactions. While this marked a slight cooling compared to October’s record-breaking figures, it highlighted the sector’s sustainable and steady growth. Average residential property prices edged up by 0.38% during the month, further indicating a consistent upward trend.
The commercial real estate market also showed robust performance, achieving a total sales value of Dh9.2 billion, a 3.1% year-over-year increase. Office sales were particularly strong, surging by 24.2%, with average prices rising 31.1% compared to the previous year. This growth reflects continued demand for premium office spaces amidst limited supply, particularly in sought-after areas such as Business Bay, Jumeirah Lakes Towers, and Barsha Heights (TECOM).
Rental activity mirrored the market’s upward trajectory, with transaction volumes climbing 21.9% month-over-month. Year-over-year, average rents across all sectors rose by 18%, driven primarily by office spaces, which saw a 28.1% increase. Deira, Dubai Investment Park (DIP), and Bur Dubai emerged as the top areas for rental transactions, underscoring their appeal to both businesses and residents.
Daniel Hadi, CEO of Engel & Völkers Middle East, highlighted the market’s adaptability and growth, stating, “Dubai’s real estate market continues to demonstrate exceptional strength and adaptability, driven by sustained demand and solid fundamentals. The residential sector’s steady growth, with increasing interest in affordable and compact living options, reflects a dynamic and maturing market catering to diverse needs.”
He further noted the commercial sector’s impressive performance, which underscores Dubai’s status as a global business hub. “As Dubai’s economy expands and continues to attract global businesses and residents, the city’s real estate sector remains on track for sustained growth. The November report highlights the market’s adaptability, strong investor confidence, and potential for record-breaking achievements as we approach 2025,” Hadi concluded.
