Top 5 most sought-after residential areas in Dubai right now

Despite a slight dip from May’s record-breaking performance, June saw a notable increase in residential transactions, while the commercial market demonstrated robust resilience.

This is according to Engel & Völkers Middle East, which has released its latest market report for June, showcasing the current strength and growth of Dubai’s real estate market.

“Our June report underscores the dynamic and resilient nature of Dubai’s real estate market. The ongoing growth in both residential and commercial sectors reflect the city’s strong economic fundamentals and its attractiveness to global investors. We remain optimistic about the market’s potential and look forward to continued success in the coming months,” said Daniel Hadi, CEO at Engel & Völkers Middle East.

Residential Market Overview

In June, Dubai’s real estate market recorded 13,436 sales transactions, marking a 43.4 per cent increase year on year. This growth was driven by the primary market, where transactions surged by 61.2 per cent. The secondary market also showed strong performance, with a 23.8 per cent rise in transactions, according to Engel & Völkers’ latest report.

Apartments remained the top choice for buyers, with one-bedroom units accounting for over 30 per cent of transactions. Meanwhile, more than 50 per cent of sales were priced between Dhs750,000 and Dhs1.5 million. Average prices continued to climb in key communities, indicating sustained demand. Despite the approaching quieter summer months, early signs suggest this year’s slowdown might be less pronounced, especially in the primary market.

The top five communities by sales transactions for the month of June were

• Arabian Ranches,
• Business Bay,
• Damac Hills,
• Downtown Dubai,
• and Dubai Hills Estate.

Commercial Market Insights

On the commercial front, June recorded a 15 per cent year-on-year decline in sales transactions. However, this decline was due to a significant reduction in hotel apartment transactions, according to the Engel & Völkers report. Excluding this, there was a 17 per cent rise in transactions. The total value of sales reached Dhs7.49 billion, a 31 per cent year-on-year increase, highlighting the market’s underlying strength.

Demand for office space also remained high, with transactions increasing by 19 per cent year on year. The average price per square foot for office space saw a substantial increase of nearly 20 per cent, driven by sustained demand from both local and international businesses.

Despite a year-on-year reduction of 3,355 rental transactions, mainly owing to declines in retail and labour camp transactions, rental prices showed strength across key segments. Office rents surged by 20 per cent year on year, retail rents increased by 11 per cent, and warehouse rents climbed by almost 19 per cent. Although a quieter period is expected over the summer months, the outlook for Dubai’s commercial real estate market remains positive, supported by strong economic fundamentals and continued interest from global investors.

The top five communities by sales transactions for offices were Deira, DIP, Business Bay, Dubai Industrial City, and Business Bay. Retail sales transactions were highest in Deira, Bur Dubai, International City, JLT, and JVC, said Engel & Völkers.