Dubai: Dubai's property market is set to see nearly 40,000 new off-plan units launched in the final four months of 2024, bringing the total number of new units launched this year to approximately 126,000.
According to a recent report from Cavendish Maxwell, the market is witnessing a robust stream of new projects, with around 200 additional developments currently in the planning stages.
In the first eight months of this year, nearly 86,000 units were launched, generating an impressive aggregate sales value of Dh213.7 billion.
This trend is expected to continue, with projections indicating that total sales could exceed last year’s record of Dh272 billion.
Market outlook
Zhann Jochinke, director of market intelligence and research at Cavendish Maxwell, commented on the market's momentum, noting, "The surge in off-plan project sales is a significant driver, while high transaction volumes reflect sustained buyer confidence, despite a temporary dip in mortgage activity."
Areas of growth
The anticipated areas of growth include apartments in Dubai Islands, Jumeirah Garden City, Dubai Maritime City, Motor City, and Dubai Land Residence Complex. Additionally, there will be new single-family units—townhouses and villas—in developments such as The Valley, The Acres, The Oasis, and The Height Country Club.
Foreign developers entering the market
The unprecedented demand for off-plan properties from both residents and investors paved the way for an influx of foreign developers in the Dubai market over the last two years. The surge inflated the property prices and rental rates.
Record transaction volumes
In August alone, the total volume of sales transactions rose by 0.28%, reaching 16,145 transactions. This figure marks not only the highest-ever August volume but also the second-highest monthly volume on record.
Notably, every month in 2024, except April, has set a record for transaction volume for that respective month.
Rising property prices
Property prices in Dubai have reached an all-time high, currently standing at Dh1,431 per square foot. This represents an increase of 82.4% from the market low in April 2009 and a 16.03% rise since the previous peak in September 2014.
On a year-on-year basis, property prices saw a 17.7% increase in August, marking the 42nd consecutive month of year-on-year price growth. Year-to-date, prices have risen by 11.5% compared to 10.9% in August 2023.
Transaction trends
Sales transaction volumes in August increased slightly by 0.2% compared to July 2024, with Oqood registrations accounting for 64.8% of all transactions—an increase of 6.5% month-on-month.
Source: Khaleej Times