15.4% growth in residential real estate sales in Dubai… and 24.2% growth for offices during November

The real estate market in Dubai continued to record exceptional performance and strong growth during last November, as the residential real estate sector recorded an increase in sales by 15.4% on an annual basis, while the total value of commercial real estate sales reached 9.2 billion dirhams, according to the latest report issued by « Engel & Völkers Middle East, the company specialized in providing brokerage services in the field of luxury residential and commercial real estate.

Daniel Hadi, CEO of Engel & Völkers Middle East, said: “Dubai’s real estate market continues to achieve strong growth and show exceptional resilience, based on strong foundations and supported by increasing demand. The sustainable growth in the residential real estate sector, with increasing interest in residential units with innovative designs and reasonable prices, reflects the dynamism of the market and its great ability to meet the diverse needs of customers. The amazing performance of the commercial real estate sector, represented by the qualitative jump in office sales and rental growth, also reflects Dubai’s consolidation of its position as a global business destination.”

He added: “It is expected that the real estate sector in Dubai will continue its upward trajectory, driven by the continued growth of the emirate’s economy and its attracting more companies and residents from various parts of the world, as the November results reflect the market’s flexibility, its ability to adapt, and the firm confidence of investors in it, which promises the possibility of achieving record achievements.” Coinciding with the approaching end of 2024 and the beginning of the new year.

Recently, there has been increased interest in affordable residential units, as the percentage of property sales worth less than one million dirhams rose to 32.2%, compared to 26.7% in October.

Apartments, especially studios and one-bedroom apartments, continued to dominate the real estate scene, accounting for more than 84% of total sales.

The commercial real estate market also achieved a strong performance, with the total value of sales reaching AED 9.2 billion, an increase of 3.1% year-on-year. Office sales also jumped by 24.2%, in addition to recording a significant increase in average prices by 31.1% year-on-year, reflecting continued strong demand and limited supply for luxury office space.

This growth extended to the rental market as well, as the volume of transactions witnessed an increase of 21.9% compared to October, and average rental prices in various sectors increased by 18% on an annual basis, led by office rents with an increase of 28.1%. High occupancy rates and strong competition in the Class A office space sector continue to contribute to Dubai’s thriving commercial real estate scene.

Although the number of residential real estate sales transactions decreased to 12,695 thousand transactions in November, compared to the record performance of October, this number still reflects the market’s stability and sustainable growth, in addition to the slight increase of 0.38% in average prices, which enhances the continuation of the upward trend. For the real estate market.