Dubai’s residential market continues its growth with property value increase by 21.3% in the past year, according to Knight Frank’s Q2 2024 report. Villas are leading the charge with prices climbing 24.3% to Dh1,896 per sq ft, surpassing the 2014 peak by 28%.

The luxury segment especially in prime areas like Palm Jumeirah and Emirates Hills has also seen significant growth. Palm Jumeirah led with the highest number of sales while overall luxury home prices increased by 7% to Dh3,706 per sq ft.

The rise in property values is driven by a growing 'buy-to-stay' trend indicating a shift from investment purchases to personal use. This change coupled with a 22.8% drop in residential listings and a 47% decrease in luxury home supply in top neighborhoods has intensified competition and price increases.

308,099 residential units are planned or under construction by 2029 with a notable focus on apartments. The supply is expected to fall short of the 73,000 homes needed annually to support Dubai’s estimated population growth to 7.8 million by 2040.

As the market evolves, the combination of reduced supply and high demand continues to drive Dubai’s residential real estate boom.

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