Dubai’s real estate market reached a new monthly high in September with 18,038 transactions, which was almost 900 more than the previous record of 17,139 set in May of this year. This shows the sector’s continued confidence and growth.
With 17,151 sales in September, residential transactions accounted for more than 95% of all sales. The off-plan sales, which accounted for 73% of total sales in September, were led by market leader Emaar. Sobha and Damac Properties placed second and third, respectively.
These real estate market sales in the first nine months of 2024 have almost matched those from the previous year, with the emirate recording an all-time high monthly transaction in September.
According to Property Monitor, sales between January and September of 2024 exceeded 131,000, which is less than 2% less than the total sales figures for 2023.
With three months remaining, it projected that the market would see sales of 170,000 units, or a nearly 30% year-over-year increase.
“To put this into perspective, by year-end 2024 we will have reached a level of sales activity quadruple that of pre-Covid trading. This phenomenal growth is not simply a post-pandemic recovery, it is unlike that of any other market in the world and is a testament to the never-ending commitment of the UAE and Dubai governments’ strategic plans, initiatives, and proactive approach to the evolution of the market,” said Property Monitor.
September 2024 was yet another historic month for Dubai’s real estate market, breaking records for both sales transactions and prices, according to Henry Bacha, CEO of Property Monitor. “Our findings underpin the ongoing success and evolution of the property market, which continues to flourish and looks set to end the year on another high, with 30 per cent growth compared to last year. A robust pipeline of new projects and easing mortgage rates continue to drive demand for both off-plan and ready properties,” he added.
Property prices rose 1.14 percent in September compared to August, averaging Dh1,448 per square foot. The median cost of a townhouse, villa, and apartment was Dh2.76 million, Dh7 million, and Dh1.3 million, respectively, according to Property Monitor.
A 16.6% increase in monthly mortgage transactions was another finding of the study. Investors benefited from lower interest rates in September, which led to almost 4,200 registrations.
Strong pipeline of new deliveries
Due to a large number of projects initiated in the post-pandemic era, fäm Properties predicts that the Dubai real estate market will see a strong pipeline of new home deliveries, reaching a record 90,000 over the next two years.
The data showed that there were almost 1,034 projects under construction, adding 288,020 units to an existing pipeline. The record of 101,654 launched units annually set in 2023 seems to have been surpassed, with the total for 2024 already at 99,779 and still rising.
The Dubai real estate market has seen a large influx of new residential projects in response to the post-pandemic demand for new tenants and property buyers.
“There are 41,800 new units set to enter the market in 2025 – a record for a single year – rising to 48,400 in 2026. Meanwhile, the number of units delivered in 2027 and beyond will likely be driven by projects launched in 2025 onwards, pointing towards continued activity in the years to come,” said Firas Al Msaddi, CEO of fäm Properties.
“With the rapid growth that we’re seeing, real estate developers and contractors are facing increasing pressure to streamline their procurement processes. The sector is grappling with significant logistics challenges, including availability and lead times of delivery, rising shipping costs, and the looming threat of global and regional geopolitical risks that could disrupt major trade routes,” he added.
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