Dubai’s real estate market continued to grow robustly in November, with the residential sector posting a 15.4% year-over-year increase and the commercial market recording a total sales value of AED9.2 billion ($2.5 billion).

 

According to the latest report from Engel & Völkers Middle East, a leader in premium residential and commercial real estate services, the residential market clocked total sales of 12,695.

 

Although the figure reflects a cooling off from October’s record-breaking figures, it underscores the market’s sustainable and steady growth. The month also saw a modest 0.38% increase in average prices, reinforcing the market’s continued uptrend.

 

Increasing appetite

An increasing appetite for affordability was evident, with properties under AED1 million climbing to 32.2% of sales, up from 26.7% in October. Studios and one-bedroom apartments saw heightened interest, further solidifying apartments as the dominant asset class, comprising over 84% of total sales.

 

The top three communities by sales transactions were Jumeirah Village Circle with 1,035 units sold, Jumeirah Village Triangle with 670 units and Business Bay with 423 units.

 

Meanwhile, the commercial real estate market showcased a strong performance, with total sales value reaching AED9.2 billion—a 3.1% year-on-year increase. Office sales surged by 24.2%, accompanied by a remarkable 31.1% year-over-year rise in average prices, highlighting the persistent demand and limited supply of premium office spaces.

 

Rental activity

Rental activity mirrored this growth, with transaction volumes increasing 21.9% compared to October. Average rents across all sectors rose by 18.0% year-on-year, led by office spaces, which saw a 28.1% increase in average rents. High occupancy rates and strong competition for Grade A spaces continue to define Dubai’s thriving commercial sector.

 

Office transactions were highest in Business Bay with 119 units sold, followed by Jumeirah Lakes Tower and Barsha Heights (TECOM). Top communities by rental transactions were Deira, DIP and Bur Dubai.

 

Daniel Hadi, CEO of Engel & Völkers Middle East, noted: "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. Meanwhile, the commercial sector’s impressive performance—marked by surging office sales and rental growth—underscores Dubai’s position 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,” concluded Hadi.--TradeArabia News Service