Dubai’s real estate market is breaking records yet again. October 2024 brought new highs in property prices, sales volumes, and mortgage activity, showing just how vibrant and fast-moving the market is.
In this article, I’ll walk you through the key trends and insights shaping the market right now.
Whether you’re an active investor or just exploring your options, this is your guide to staying on top of Dubai’s ever-evolving property landscape.
Property Prices: Steady Growth Reflecting Stability
In October 2024, property prices in Dubai increased by 1.73% month-on-month, bringing the average to AED 1,473 per square foot. This marks a 19.4% increase over the previous all-time high in September 2014 and nearly 60% growth since the market’s bottom in late 2020.
The current cycle, which has lasted 48 months, reflects a stable growth phase compared to the aggressive price increases of previous cycles.
Average monthly appreciation remains moderate at 1.24%, a sign of sustained investor confidence without the speculative volatility seen in earlier years.
For investors, this consistent price growth underscores the market’s stability and long-term potential for reliable returns.
Image credit: Property Monitor
Record-Breaking Sales Transactions
October 2024 saw an unprecedented 20,460 sales transactions, a 13.4% increase from September, setting a new monthly record.
Residential properties dominated the activity, accounting for 94.9% of sales. Key categories included apartments, townhouses, and villas.
Cumulatively, sales volumes for 2024 have surpassed 151,000 transactions, exceeding 2023 year-end figures by 13.4%.
With two months remaining, the market is on track to achieve an annual growth rate of over 30%, reaching approximately 175,000 transactions by year-end.
This sustained growth aligns with Dubai’s Real Estate Sector Strategy 2033, which aims to grow real estate transactions by 70%, increasing the market value to AED 1 trillion.
Off-Plan Market: A Key Driver of Growth
Off-plan sales continue to lead the market, with October registering 13,316 off-plan Oqood transactions, a 12.7% month-on-month increase.
Despite a minor dip in market share to 65.1%, adjusted figures suggest that off-plan transactions make up 72.6% of total sales when accounting for certain technicalities in data classification.
The market also welcomed 48 new residential projects in October, introducing over 15,000 off-plan units. Year-to-date, nearly 99,000 new residential units have launched, with offerings across all price segments.
For investors, off-plan properties present significant opportunities. They provide lower entry costs and the potential for strong capital appreciation, especially as projects near completion.
However, timing and due diligence remain critical to mitigate risks.
Image credit: Property Monitor
Luxury Market: A Magnet for High-Net-Worth Individuals
Dubai’s luxury real estate market continues to attract affluent buyers, with October seeing significant activity in high-end properties.
Prime areas such as Palm Jumeirah, Downtown Dubai, and Emirates Hills remain hotspots for luxury investments.
This segment not only offers exclusivity but also potential for substantial returns, driven by growing global interest in Dubai as a lifestyle and investment destination.
Mortgage Activity Hits an All-Time High
October 2024 saw a record 4,318 mortgage registrations, a 3.26% increase from September. This surge reflects the broader rise in transaction volumes and recent interest rate reductions, which have made financing more accessible.
Mortgage penetration for completed properties grew to 36.3%, up from 28.3% in the previous year. The average loan size was AED 1.75 million, with a loan-to-value ratio of 76.5%.
These figures highlight the increasing reliance on financing, particularly for ready properties.
For investors, the favorable lending environment offers an opportunity to leverage financing for higher returns.
Off-Plan Resales: Stronger Than Ever
Off-plan resales in October accounted for 27.1% of total transactions, the highest level in the current market cycle. This represents a steady upward trend, with most resales concentrated in properties nearing completion.
Off-plan resales provide a profitable exit strategy for investors looking to capitalize on price appreciation before handover. However, careful attention to market conditions and timing is essential to maximize returns.
Market Diversity Through New Project Launches
With over 250 projects in the planning stages, 2024 has been a year of diversification in Dubai’s real estate offerings.
Unlike the luxury-dominated launches of 2023, this year has seen projects spanning a broader spectrum of price points, catering to a wider range of investors.
Image credit: Property Monitor
By the end of 2024, nearly 135,000 new residential units are expected to enter the market, setting a record-breaking pace of development.
While this reflects strong developer confidence, monitoring inventory absorption will be crucial to maintaining market balance.
Strategic Pricing for Sellers
As demand for ready properties grows and mortgage rates ease, sellers might be tempted to increase asking prices.
However, aggressive pricing strategies could deter buyers, particularly when off-plan properties offer competitive alternatives.
Sellers should focus on realistic pricing to attract serious buyers and make the most of current market conditions, avoiding the risk of extended listing periods.
Looking Ahead: Opportunities and Caution
As Dubai’s real estate market heads into the final quarter of 2024, the outlook remains optimistic.
Stable price growth, strong transaction volumes, and a robust off-plan market suggest continued momentum.
However, with a record number of new units entering the market, maintaining the supply-demand balance will be key. Investors should remain vigilant, focusing on high-demand segments and realistic pricing to ensure sustainable returns.
Key Takeaways for Investors from the October 2024 Property Monitor Report
Price Stability: Moderate, consistent growth offers a reliable investment environment.
High Liquidity: Record-breaking sales transactions underline strong market activity.
Off-Plan Appeal: Attractive pricing and appreciation potential make this a lucrative segment.
Luxury Opportunities: Prime properties continue to draw global interest and deliver robust returns.
Favorable Financing: Eased mortgage rates create an ideal environment for leveraging investments.
Dubai’s property market remains a beacon of opportunity, blending growth with stability.
For investors, staying informed and aligning strategies with market trends will be critical to achieving long-term success.
Conclusion: A Record-Setting Market Poised for Growth
The October 2024 Property Monitor report highlights Dubai’s exceptional real estate performance, from record-breaking transactions to a thriving off-plan segment.
As the city continues its trajectory toward becoming a global investment powerhouse, the opportunities for savvy investors remain abundant.
With careful planning and a focus on market trends, you can make the most of Dubai’s ever-evolving real estate landscape.
Take the Next Step with Expert Guidance
To make the most of Dubai’s dynamic real estate market, reach out to our expert advisors today. We offer investors completely impartial real estate investment advice and support throughout the entire property investment lifecycle.
Recognized as a top-ten UAE broker for the past four years, our team of over 100 realtors provides comprehensive assistance in buying, selling, and letting properties, with access to a database of over 1 million investors.
Our services include detailed portfolio analysis and management to maximize ROI, exclusive access to pre-market launches and distress deals, and the use of advanced analytic software and AI-driven tools for smart decisions.
Additionally, we offer tailored services for high-net-worth individuals, including tax advisory, mortgage financing, offshore banking, legacy planning, and more.
If you’re an investor, we believe we can offer you a unique and unparalleled approach to developing effective real estate investment strategies.
Reach out today and let us help you capitalize on the opportunities in Dubai’s thriving property market.
Comments