Dubai Real Estate Market Report — July, 2021

Dubai Real Estate Market Report – July 2021

Dubai's property market produced a landmark July in 2021, as 4,377 transactions worth AED 11.17 billion changed hands across every property type. On the apartment, villa and commercial basis, volume leapt +94% to 4,141 deals and value surged +168% to AED 9.19 billion versus July 2020.

The size of those gains must be judged against the calendar. 2021 was the first full post-lockdown year, and the comparison month lay in a market still overshadowed by pandemic restrictions. As curbs loosened and international buyers came back, the month set fresh records for both transaction volume and value, underpinned by a citywide median of AED 1,029/sqft.

Headline figures

Year-on-year performance by category

Apartments powered the growth. The segment recorded 3,015 sales — 1,454 above the year before and the highest July volume since 2017 — as transactions rose +93% and value rocketed +189% to AED 5.30 billion. Pricing strengthened alongside the volume: the median reached AED 1,251/sqft, up +28% year on year and +14% above its 2014 level, while the median ticket settled at AED 1,060,181 (+29%).

Villas told a comparable growth story with a sharper pricing edge. Their 985 deals marked a +91% annual gain and the highest July volume since 2015, and value climbed +149% to AED 3.73 billion. The price momentum stands out: at AED 812/sqft the villa median was +39% higher year on year — the highest July price per square foot since 2017 — and a median ticket of AED 2,645,000 (+26%) underscores how far the house-buying push had gone.

Commercial, though small, posted the steepest volume rebound of the three. Its 141 transactions rose +120%, once again the highest July count since 2017, while value grew a more measured +68% to AED 167.28 million. Prices recovered too, reaching AED 795/sqft — up +22% and the highest July reading since 2018 — yet the segment still trades 30% beneath its 2014 benchmark, the sole corner of the market still to reclaim where it began the series.

Every category, including plots and buildings

Plots were the quiet swing factor behind the headline total. 236 plot deals added AED 1.98 billion — essentially the whole gap between the AED 9.19 billion apartment-villa-commercial tally and the AED 11.17 billion market-wide figure. At AED 562/sqft land was the cheapest category by area, yet a median plot ticket of AED 4,835,944 was the largest of any type, reflecting the scale of the parcels changing hands.

Primary versus resale

New-build activity led the market, but resale carried more weight per deal. Primary sales made up 62% of volume and 59% of value — 2,567 deals worth AED 5.43 billion — while resale accounted for 38% of volume yet a larger 41% of value, its 1,574 transactions generating AED 3.76 billion. That three-point gap between resale's value and volume shares points to a secondary market weighted toward pricier, more established stock.

Where the activity was

Marsa Dubai headed both league tables, leading on value at AED 1.54 billion and on volume with 600 transactions. Palm Jumeirah ranked second by value at AED 958.47 million, ahead of Hadaeq Sheikh Mohammed Bin Rashid (AED 934.02 million), with Al Merkadh (AED 655.92 million) and Business Bay (AED 636.01 million) completing the top five. By deal count, Al Merkadh (391) and Business Bay (379) trailed Marsa Dubai, with Al Thanyah Fifth (318) and Al Barsha South Fourth (281) close behind.

Rental market

The leasing market moved to a different beat than sales. Apartment rents softened: new-contract medians eased -4.76% to AED 40,000, and renewals fell harder, down -18.18% to AED 45,000 across 5,914 renewed contracts. Villas diverged — new-lease volume dropped -31.71% to 1,279 contracts, but the median new rent rose +14.29% to AED 120,000 as tenants chased scarce houses. Commercial leasing was the clearest bright spot, with new contracts up +19.26% to 1,232 and their median rent climbing +20.97% to AED 75,000.

Supply

On the pipeline, deliveries ran ahead of new launches. Developers handed over 2,736 units across 10 completed projects while launching 2,022 units across 4 new ones — a launch-to-delivery ratio of 0.7 and a net 714 more homes delivered than launched. For a market absorbing record demand, that net drawdown of the forward pipeline is worth watching.

Launched

• The Valley-Nara – Al Yufrah 1 (Emaar), 372 units
• Regalia – Business Bay (Deyaar), 913 units
• Murooj Alfurjan West – Jabal Ali First (Nakheel), 521 units
• La Rosa 5 – Wadi Al Safa 5 (Dubai Properties), 216 units

Delivered

• Amazonia-Ex – Madinat Hind 4 (Damac), 15 units
• Binghatti Gateway – Al Jaddaf (Binghatti), 182 units
• Sky Bay Hotel – Business Bay (The First Group), 711 units
• Mohammad Aqil Ali & Ahmad Ali Alzarooni – Marsa Dubai (Mohammad Aqil Ali & Ahmad Ali Alzarooni), 241 units
• Damac Hills (2) - Coursetia – Madinat Hind 4 (Damac), 169 units
• The Square – Al Barsha South Fourth (Tiger), 376 units
• Millennium Binghatti Residences Business Bay – Business Bay (Binghatti), 246 units
• Damac Hills (2) - Acuna – Madinat Hind 4 (Damac), 35 units
• Jumeirah Luxury – Me'Aisem First (Jumeirah Luxury Living), 165 units
• Ag Tower – Business Bay (Arabian Gulf), 596 units

Most expensive sales

Top apartment sales

1. AED 72,000,000 – Palme Couture Residences, Palm Jumeirah
2. AED 21,000,000 – Five At Palm Jumeirah Dubai, Palm Jumeirah
3. AED 18,000,000 – Vida Residence Downtown, Downtown Dubai
4. AED 14,000,000 – The Residences 4, Downtown Dubai
5. AED 12,000,000 – The Address Residence Fountain Views 3, Downtown Dubai

Top villa sales

1. AED 86,000,000 – Hadaeq Sheikh Mohammed Bin Rashid
2. AED 67,000,000 – Um Suqaim Third
3. AED 52,000,000 – Al Merkadh
4. AED 43,500,000 – Emirates Living
5. AED 26,900,000 – Me'Aisem First

Notes on methodology

Scope. The headline totals and the category table span every property category captured in the data, Plot and Building included. The primary/resale split, top-area rankings and the year-on-year series cover Apartment, Villa and Commercial alone, so those numbers are intentionally smaller than the headline and should not be summed across sections.

Rounding. The headline totals are the definitive rounded figures. Category-level breakdowns are rounded on their own and may not add up precisely to the headline.

Definitions. Price figures represent medians rather than averages. Year-on-year sets the period against the matching period a year before. All values are in AED; areas in square feet.