In a remarkable achievement, Dubai’s property market recorded 18,038 transactions in September 2024, marking a new all-time monthly high. This impressive figure eclipses the previous record of 17,139 sales set in May of this year by nearly 900 transactions.
This surge not only highlights the ongoing recovery of the real estate sector post-pandemic but also signifies the increasing confidence investors and buyers have in the Dubai market.
A significant aspect of this growth is the dominance of residential transactions. Out of the total sales in September, 17,151 were residential properties, accounting for over 95% of all transactions. This overwhelming share underscores the high demand for homes in Dubai, particularly as families and individuals seek out new living arrangements in a city known for its luxury and vibrant lifestyle.
Among these sales, off-plan properties played a crucial role, representing 73% of all residential transactions. Leading the charge in this category was Emaar Properties, one of the UAE's most prominent developers, followed closely by Damac Properties and Sobha Realty. This trend indicates a strong appetite among buyers for new developments, as many are eager to invest in properties that promise modern amenities and the potential for appreciation in value.
As we reflect on the first nine months of 2024, the numbers reveal that the Dubai property market is nearing last year’s total sales figures. Data from Property Monitor shows that sales from January to September 2024 have surpassed 131,000 transactions.
This is just shy of a 2% decrease compared to the entire sales figure for 2023, suggesting that the market remains robust as we head toward year-end. With only three months left in the year, projections indicate that the market is on track to witness a year-on-year increase of nearly 30%, with anticipated sales reaching 170,000 units by the end of December.
According to Henry Bacha, CEO of Property Monitor, September 2024 has set yet another benchmark for Dubai’s real estate sector. “Our findings reflect the ongoing success and evolution of the property market, which continues to flourish,” he stated. Bacha emphasizes that the momentum seen in September is indicative of a broader trend of growth and resilience. “By the end of 2024, we will have reached a level of sales activity quadruple that of pre-Covid trading. This phenomenal growth is not merely a post-pandemic recovery; it is unlike that of any other market in the world.”
This rapid expansion is supported by several strategic initiatives and plans from the UAE and Dubai governments, which have been instrumental in fostering a conducive environment for real estate development. The authorities’ proactive approach has instilled confidence among investors, encouraging both local and international buyers to participate in the Dubai property market.
As sales soar, property prices have also seen a notable increase. In September, property prices rose by 1.14% compared to August, bringing the average price to Dh1,448 per square foot. This upward trajectory in prices reflects the strong demand for properties across various segments.
The median price for different types of residential units showcases the market's diversity, with apartments averaging Dh1.3 million, townhouses at Dh2.76 million, and villas commanding an average price of Dh7 million. These figures indicate a thriving market catering to various buyer preferences, from affordable apartments to luxurious villas.
Another interesting trend is the surge in mortgage activity. There was a 16.6% increase in mortgage transactions month-on-month, with nearly 4,200 registrations in September alone. This spike suggests that many investors and homebuyers are taking advantage of lower interest rates, making it an opportune time to secure financing for their property purchases. The increase in mortgage registrations further underscores the confidence in the property market, as buyers are willing to commit to long-term investments.
The future of Dubai’s property market looks promising, with a strong pipeline of new developments on the horizon. Experts predict that the market will see a record 90,000 new home deliveries over the next two years, according to data from fäm Properties. Currently, about 1,034 projects are under construction, which will add approximately 288,020 units to the existing inventory. The year 2023 set a high bar with 101,654 units launched, but 2024 is already on pace to match or exceed that total, currently standing at 99,779 units, with more developments in the pipeline.
This influx of new projects is a direct response to the post-pandemic demand for residential properties, as developers work to accommodate the needs of new tenants and property buyers. As the city continues to grow, the availability of diverse housing options is essential for meeting the needs of its expanding population.
The outlook for the coming years remains bright, with 41,800 new units projected to enter the market in 2025, marking a record for a single year. This figure is expected to rise further to 48,400 units in 2026. The units delivered in 2027 and beyond will likely be influenced by projects launched in 2025, suggesting sustained activity in the real estate sector well into the future.
Firas Al Msaddi, CEO of fäm Properties, noted the challenges accompanying this rapid growth. He emphasized that developers and contractors are facing increasing pressure to streamline their procurement processes to keep up with demand. The sector is grappling with significant logistics challenges, including issues related to the availability and lead times of materials, rising shipping costs, and the looming threat of global and regional geopolitical risks that could disrupt major trade routes.
In summary, Dubai's property market is witnessing unprecedented growth and activity, with record-breaking sales, rising property prices, and a robust pipeline of new projects. The confidence shown by both buyers and investors reflects a thriving sector poised for continued success. As the city continues to evolve and attract global interest, it is clear that Dubai remains a premier destination for real estate investment, promising exciting opportunities in the years to come.
