Palm Jumeirah Tops Gains as Resale in Market Booms
In 2024, fäm Properties listed record profits by the investors in Dubai’s real estate sector, coming from the resale market of AED 59.7 billion ($16.34 billion). It constituted 32% of the sale value of AED 188.1 billion, the historic high recorded by the Dubai real estate industry, highlighting the sector’s profitability and its appeal for global investors.
PC: Zawya
Resale profits were 34% more than in the preceding year and have seen a rise of about 1300% over the last five years. The profits signify Dubai’s growing stature as a promising market for real estate investors.
According to DXBinteract data concerning 136 areas in the emirate, Palm Jumeirah topped with AED6.48 billion in capital gains. Other notable areas like Dubai Marina, Dubai Hills Estate, Downtown Dubai, Business Bay, and Jumeirah Village Circle (JVC) were also among the top ten for annual capital gains. JVC also pointed to a distinguishing characteristic of leading in-ready property developer sales in 2024 and stood second in total resale transactions after Dubai Marina.
Firas Al Msaddi, CEO of fäm Properties, attributed the growth in the sector in 2024 to Dubai Land Department’s transformative measures, with hopes for greater advancements in the year 2025. Al Msaddi noted investors’ substantial capital gains as a representation of the strength of the market and of the regulation system managed by the Dubai government. He expressed optimism that these profits would drive the reinvestment and attract new capital further strengthening Dubai’s position in the global real estate market.
Hence, these actions will forge ahead in developing the industry under the forward-thinking Dubai Land Department in the new year 2025.
The 2024 Review reported a robust performance in the property sector, attributed to the full recovery that saw values up 21 percent and transactions increase 14 percent since it had a total of 61,100 transactions YuY. The other factors contributing to this sector performance include the growing preference of buyers for ready properties, high rental yield, and upgrades in infrastructure.
2024 became a benchmark year across property segments. Apartment sales led the pack, showing growth to an extent of 42 percent YoY, with 141,168 transactions worth AED 260.6 billion. Villa sales also made a notable leap, increasing by 21.1 percent, with 30,938 transactions valued to AED 164.1 billion.
There was an increase of 10.1 percent in commercial property volume transactions with 4.304 units worth AED9.7 billion, whilst 4.352 plots were sold for AED86.5 billion, marking gains of 2.6 percent.
Such strong outcomes confirm the international outlook of Dubai’s real estate market with good infrastructure together with trickle down due to investor confidence in regulatory policy. High rental yields with continued capital gains ensure that both local and international buyers are keen to put their money towards long-term opportunities.
