Dubai’s real estate transactions are set to grow 30 percent year-on-year by the end of 2024 as the sector continues to break records for sales, prices, mortgages, and launches, according to the latest analysis from Property Monitor. Annual sales transaction volumes have now surpassed 151,000 and have eclipsed 2023 year-end sales by 13.4 percent.
This phenomenal growth and overall trajectory of market activity will provide a solid footing for achieving the ambitious objectives of the Dubai Real Estate Sector Strategy 2033, which calls for real estate transactions to grow by 70 percent, raising the overall market value to AED1 trillion.
“As we move through the year’s final quarter, closing out an exceptionally strong phase for the Dubai real estate market, we anticipate continued overall market health. However, a gradual slowdown in transaction volumes is likely. With new development project launches showing no signs of deceleration, monitoring the absorption of this fresh inventory will be crucial,” the report stated.
October records four all-time highs
Dubai in October shattered records with a notable 13.4 percent increase in real estate sales transactions, soaring to an unprecedented 20,460 deals. Not only did this mark the highest October sales volume ever, but it set yet another all-time monthly record.
Residential transactions, encompassing apartments, townhouses, and villas, accounted for the majority of sales at 94.9 percent. The highest transacted commercial property types were office spaces, hotel apartments, and vacant land.
“Dubai’s property market continues to gather pace. Once again, records have been broken and new milestones have been reached, reflecting sustained confidence from local and international investors and cementing Dubai’s position as a force to be reckoned with on the global scene,” stated Henry Bacha, CEO of Property Monitor.
Prices rise to record high
Dubai real estate prices grew by 1.73 percent in October and currently stand at AED1,473 per square foot, also setting a new record high that is 19.4 percent over the previous all-time high and market peak of September 2014.
In contrast to the previous market cycle which lasted only 24 months and saw an average monthly appreciation of 1.6 percent, what the market is experiencing now shows greater signs of stability with less speculative activity. Barring any major disruptions, this trend appears likely to carry on well into the new year.
“As the end of the year draws near, we can say with confidence that 2024 is likely to close with 30 percent year-on-year sales growth – and with cautious optimism that the market is set to grow further as we move into 2025,” he added.
Record-breaking 99,000 units added
Preliminary figures for October indicate the introduction of 48 new residential projects with over 15,000 off-plan units added to the market. This contributes to an already record-breaking total of approximately 99,000 units across over 343 projects this year. The growing number of active developers in the market has led to a much broader diversity in product offerings.
While 2023’s launches were largely in the luxury and ultra-luxury segments, 2024 has brought projects across a wider spectrum of price ranges. With over 250 additional projects in the planning phases, Property Monitor anticipates that new launches will maintain historically high levels throughout the remainder of 2024 and well into 2025.
“Dubai’s property market continues its remarkable ascent, showcasing resilience and steady demand. October marked another milestone, reflecting strong buyer confidence and consistent price growth, cementing the city’s position as a leading global real estate hub,” stated Zhann Jochinke, chief operating officer.
Mortgage activity surged in October, reflecting the broader rise in real estate sales transactions across Dubai. The number of registered loans hit an all-time high of 4,318, marking a 3.26 percent increase from September and a 1.34 percent rise over the previous record high. This uptick in mortgage activity aligns with recent interest rate easing, making financing more accessible and attractive for buyers.
