PC: Forbes
Residential and Commercial Sectors Continue Upward Trend
The real estate market of Dubai was performing pretty well in November, with the residential sector and the commercial sector registering a very good performance, based on the latest report issued by Engel & Völkers Middle East.
The residential market recorded 12,695 sales in November, that is a 15.4 percent annual increase. Although the figure is a slight respite from record-breaking October data, it showcases the marketplace as a solid and long-lasting trend going upwards.
Average prices inched up 0.38% in the month, continuing the sector’s long-term trend. Affordable properties continued to pick up, with sales under AED 1 million rising to 32.2% of transactions, up from 26.7% in October.
Apartments emerged as the primary asset class with increased demand for compact living options like studios and one-bedroom apartments. Apartments accounted for more than 84% of the total residential sales during November.
Residential Sales: Jumeirah Village Circle dominated the market with 1,035 units sold, followed by Jumeirah Village Triangle with 670 units and Business Bay with 423 units.
Commercial Sector’s Excellent Growth
Commercial property recorded healthy performance, as the overall sales value totaled AED9.2 billion ($2.5 billion), or 3.1 percent more than a year ago. Office sales particularly enjoyed significant growth, up by 24.2 percent in year-over-year terms.
The average commercial price is also up 31.1 percent against November 2022, an uptrend which demonstrates how a high demand for high-value offices persists despite scarcity of stock.
Sales for office space were recorded as most significant in Business Bay followed by Jumeirah Lakes Tower and Barsha Heights (TECOM) transactions recorded at 119.
Increase in Rental Activity
It experienced overall market growth and witnessed transaction volumes increase by 21.9% compared to October. Residential and commercial averages registered 18.0% year-on-year increases in average rents.
The commercial sector led the rental growth, particularly office spaces, which saw an impressive 28.1% increase in average rents. High occupancy rates and strong competition for Grade A office spaces continued to drive this trend, further strengthening Dubai’s position as a global business hub.
Top communities for rental transactions included Deira, Dubai Investment Park (DIP), and Bur Dubai, highlighting their continued appeal to tenants.
Market Adaptability and Outlook
Daniel Hadi, CEO of Engel & Völkers Middle East, said, “The Dubai real estate market is so resilient and adaptable that it 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. Meanwhile, the commercial sector’s impressive performance—marked by surging office sales and rental growth—underscores Dubai’s position as a global business hub.”
Hadi further emphasized the positive trend exhibited by the market as Dubai’s economy flourishes:
“As Dubai’s economy expands and continues to attract global businesses and residents, Dubai’s real estate sector continues on its growth trajectory, according to the November report. It points out market adaptability, strong investor confidence, and potential record-breakers as we approach 2025.”
The residential and commercial markets in Dubai continue to show strong fundamentals, which reflects investor confidence and the city’s ability to adapt to changing market demands.
