The October 2024 Property Monitor Monthly Market Report reveals record-breaking growth and cautious optimism as the Dubai real estate market continues its upward trajectory. With property prices, transactions, and new project launches soaring, the market is poised for a remarkable year-end.
Key Highlights from October 2024
1. Continued Property Price Appreciation
Dubai property prices rose by 1.73% month-on-month, with an average of AED 1,473 per square foot. This marks a 19.4% increase over the previous market peak of September 2014. Over the current market cycle, spanning 48 months, prices have grown steadily at an average of 1.24% per month, signalling stability compared to past speculative cycles.
2. Record-Breaking Sales Transactions
October witnessed an unprecedented 20,460 sales transactions, a 13.4% increase month-on-month. Residential properties dominated the market with a 94.9% share, comprising apartments, villas, and townhouses. With total annual sales now exceeding 151,000—13.4% more than 2023 year-end figures—the market is on track for a 30% growth rate, redefining expectations and aligning with the ambitious goals of the Dubai Real Estate Sector Strategy 2033.
3. Surge in Off-Plan Activity
Off-plan projects have had a prolific year, with over 100,000 new residential units launched across 343 projects to date. October alone saw the introduction of 48 projects with 15,000 units. While luxury and ultra-luxury segments dominated 2023, 2024 has expanded to include more diverse price ranges, attracting a broader buyer demographic.
4. All-Time High in Mortgage Transactions
Mortgage activity climbed to a record 4,318 loans in October, a 3.2% increase from the previous month. Easier financing options, aided by recent interest rate easing, have made mortgages more accessible, with the average loan amount reaching AED 1.75 million. Notably, loans for new purchases constituted 48.2% of borrowing activity, emphasizing the growing reliance on financing in the market.
5. Balanced Growth Across Segments
While off-plan sales captured 65.1% of the market, resale transactions contributed 31.2%, reflecting steady demand across completed and under-construction properties. A notable rise in off-plan resales—focused on projects nearing completion—further supports the healthy demand-driven growth rather than speculative trading.
Outlook for the Market
The exceptional growth trajectory in 2024 underscores Dubai's resilience and strategic planning in the real estate sector. However, as the year concludes, experts foresee a possible gradual slowdown in transaction volumes, driven by the high influx of new inventory. With nearly 135,000 residential units expected to enter the market by year-end, maintaining a balance between supply and demand will be crucial.
Dubai’s real estate market is experiencing an unparalleled growth phase, characterized by steady price appreciation, record sales, and robust mortgage activity. While challenges like inventory absorption remain, the sector's performance reflects strong market fundamentals and positions Dubai as a global investment hub.
All statistics are provided by Property Monitor- the region’s leading real estate intelligence platform.
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