Dubai Real Estate Hits Record Highs: October 2024

The Dubai real estate market continues to break records, showcasing unprecedented growth and stability. With property prices appreciating significantly and sales transactions reaching all-time highs, the market has demonstrated resilience and a promising outlook for the coming years.

Property Price Trends: Sustained Growth and Stability

Dubai property prices have appreciated by nearly 60% since the market bottomed out four years ago, marking a monthly increase of 1.73% in October 2024. The Property Monitor Dynamic Price Index (DPI) reports that prices currently average AED 1,473 per square foot, surpassing the previous peak of September 2014 by 19.4%.

The current market cycle reflects sustained stability, with prices rising at an average monthly rate of 1.24% over 48 months, compared to the prior aggressive 24-month cycle of 1.6% per month. This moderation suggests a healthier, less speculative market environment.

Sales Transactions: A Record-Breaking October

October saw 20,460 transactions, marking a 13.4% increase compared to the previous month and setting an all-time high for monthly sales.

Residential properties dominated the market, accounting for 94.9% of transactions.

Commercial properties made up the remainder, led by office spaces (1.5%), hotel apartments (1.04%), and vacant land (0.91%).

Annual sales have already surpassed 151,000 transactions, a 13.4% increase over 2023 totals, with a forecasted year-end figure of 175,000 transactions—a potential 30% year-on-year growth.

Chart: Monthly Sales Transactions in Dubai, 2024

Off-Plan and Resale Market Performance

The off-plan market remains robust, with 13,316 Oqood transactions in October, representing 65.1% of total sales. Adjusting for off-plan villa and townhouse transactions classified as completed, the actual market share rises to 72.6%.

Resale transactions reached 6,392, holding 31.2% market share but reflecting a slight 0.2% decline month-on-month. Notably, off-plan resale activity climbed to 27.1%, the highest in this market cycle, driven by demand for properties nearing completion.

Supply Dynamics: New Projects and Inventory Growth

The market continues to see robust new project launches:

• 48 new residential projects introduced over 15,000 off-plan units in October alone.
• Total new units for 2024 are expected to reach 135,000 across 343 projects—a record pace.
• While luxury and ultra-luxury dominated 2023 launches, 2024 has seen a diversification into various price segments, catering to broader market needs.

Chart: New Residential Units Launched in 2024

Mortgage Market: A Surge in Financing Activity

October set a new benchmark for mortgage activity, with 4,318 registered loans, a 3.26% increase from September. Key highlights include:

Mortgage penetration for completed properties at 36.3%, up from 28.3% in October 2023.

Average loan amount: AED 1.75 million, with a 76.5% loan-to-value ratio.

Bulk mortgages accounted for 18.5% of all loans, driven by significant registrations at projects like Marriott Residences in Dubai Science Park and Canal Front Residences.

Chart: Monthly Mortgage Registrations in Dubai, 2024

Looking Ahead: Key Considerations for 2025

As Dubai’s real estate market continues to expand, it faces the challenge of absorbing an influx of new inventory. By year-end, nearly 135,000 new residential units will have been added to the market, necessitating commensurate growth in population and economic activity.

While the market shows no immediate signs of slowing, a cautious approach to supply-demand dynamics will be essential in maintaining long-term stability.

Conclusion

The Dubai real estate market’s strong performance in October underscores its appeal as a global investment hub. With rising prices, record-breaking sales, and increased financing activity, the sector is well-positioned to support the ambitious goals of the Dubai Real Estate Sector Strategy 2033.

Whether you are looking to invest in off-plan properties, completed units, or resale opportunities, the Dubai market offers something for everyone. For more insights and opportunities, contact us today!