Dubai Real Estate Market Sets New Records with 18,038 Transactions in September

In September 2024, the Dubai property market registered its greatest month so far, 18,038 property transactions-surpassing 17,139 transactions from May this year. This surge shows strong growth, with greater confidence from the investors in Dubai’s property sector.

Record-Breaking Transactions and Consistent Market Growth

Residential properties made up over 95% of transactions in September, totaling 17,151 deals. Leading developer Emaar dominated, with 73% of all sales focused on off-plan properties, followed by DAMAC Properties and Sobha Realty. Year-to-date sales in 2024 nearly match last year’s total. Property Monitor reports that from January to September 2024, sales exceeded 131,000 transactions, falling just 2% short of the entire total for 2023. Projections indicate a potential 30% year-over-year increase, possibly reaching 170,000 sales by the year’s end.

Historical Sales Comparison to Before-2020, as Market Drivers

Early in the quarter, Prop-erty Monitor had noted that Dubai’s real estate activity was bound to expand to four times the level it was in the year 2020, thus going beyond price recovery, going through a completely different growth trajectory that has been encouraged by UAE governmental initiatives to support its development. Henry Bache, CEO, Property Monitor, index-es a record month for transaction volume and properties this September, mentioning a forecasted 30% increase by the end of the year, thanks to new projects and declining mortgage rates.

Rising Property Prices and Average Prices by Property Type

Property prices increased in September, with an average of AED 1,448 per square foot—a 1.14% rise from August. The average price for townhouses in dubai reached AED 2.76 million, villas AED 7 million, and apartments AED 1.3 million. Mortgage activity also surged, with a 16.6% increase in transactions, attracting both investors and homebuyers.

Procurral of new building units

As reported by fäm Properties, some 90,000 new units will soon be injected into Dubai’s property market in the next two years, driven by post-pandemic projects. Around 1,034 construction projects are currently underway, with over 288,020 new units expected to be completed in Dubai by construction companies. So far, deliveries stood at 99,779 this year, likely headed toward more than 100,165 deliveries made in Dubai in 2023.

Challenges for Developers Amid High Demand

Firas Al Msaddi, CEO of fäm Properties, noted that:

“41,000 new units are expected to enter the market in 2025—a record for a single year—with an additional 48,400 units in 2026.”

He noted that future deliveries from 2027 onward will be driven by projects launched in 2025, underscoring sustained activity in the years ahead.

Al Msaddi added, “With the rapid growth we’re experiencing, real estate developers and contractors are under increased pressure to streamline their procurement processes. This sector faces logistical challenges, including delivery timelines, rising transportation costs, and geopolitical risks that could disrupt key trade routes.”

Conclusion

The real estate market under Dubai is one to behold, with all-time high transactions in September and rising property values. The reasons behind the multiple factors include low mortgage rates, huge demand, and favorable government support. Despite logistical and cost issues, the Dubai real estate sector is looking forward to being one of the most attractive property hubs in the world.

Source: https://www.propertynews.ae