Dubai Real Estate Market on Track for Record-Breaking Year: Nearly 40,000 New Off-Plan Units Expected by Year-End
The Dubai property market continues to set new records in 2024, with a wave of new project launches and rising property prices. According to the latest Property Monitor report by Cavendish Maxwell, the last four months of the year are expected to see nearly 40,000 new off-plan units enter the market, adding to an already staggering tally of 86,000 units launched in the first eight months. This will bring the total to nearly 126,000 new units for the year—one of the highest figures ever recorded for Dubai's real estate sector.
A Surge in New Project Launches
With nearly 200 projects currently in the pipeline, Dubai's off-plan market shows no signs of slowing down. These projects span various pricing segments and neighborhoods, with significant focus on apartment developments in popular areas like:
- Dubai Islands
- Jumeirah Garden City
- Dubai Maritime City
- Motor City
- Dubai Land Residence Complex
In addition to apartments, single-family units such as townhouses and villas are expected to be launched in key communities, including:
- The Valley
- The Acres
- The Oasis
- The Height Country Club
This surge in new developments is fueled by unprecedented demand for off-plan properties, with both local residents and international investors seeking lucrative opportunities.
Record-Setting Sales and Transaction Volumes
The real estate market's momentum is clearly reflected in the sales figures. By August, the total value of new project sales had reached AED 213.7 billion, well on track to surpass last year’s total of AED 272 billion. Additionally, August recorded 16,145 property transactions—a 0.28% increase over the previous month—making it the highest-ever volume for August and the second-highest month on record overall.
A key factor in this sales boom is the robust off-plan market, with Oqood (off-plan) registrations accounting for 64.8% of all transactions, a 6.5% month-on-month increase. This demonstrates the growing buyer confidence in purchasing off-plan properties, despite recent dips in mortgage activity.
Soaring Prices and Continued Growth
Property prices have continued their upward trajectory in 2024, reaching an all-time high of AED 1,431 per square foot. Compared to the market low in April 2009, prices have surged by 82.4%, and they now stand 16.03% higher than the previous market peak in September 2014. Year-on-year, prices rose by 17.7% in August 2024, marking 42 consecutive months of price growth. On a year-to-date basis, prices increased by 11.5%, compared to 10.9% during the same period last year.
Looking ahead, experts predict continued growth in Dubai’s real estate market, barring any significant economic or geopolitical disruptions. The current market conditions, driven by strong demand and a high level of investor confidence, are expected to fuel further growth throughout the rest of 2024.
Foreign Developers Entering the Market
The past two years have also seen a rise in foreign developers entering the Dubai market, attracted by the city's booming demand for off-plan properties. As Dubai’s population continues to grow—reaching 3.781 million this year—the demand for high-quality residential units remains strong. This influx of foreign investment is further diversifying the city’s property landscape, contributing to the surge in both project launches and sales transactions.
What’s Next for Dubai’s Property Market?
As Dubai’s real estate market heads into the final months of 2024, all signs point to a record-breaking year. The combination of nearly 40,000 new off-plan units, high transaction volumes, and rising property prices will likely cement Dubai’s reputation as one of the world’s most dynamic property markets.
For potential buyers and investors, this presents a golden opportunity to tap into the booming off-plan market. Whether you're looking for a luxury apartment in the heart of Dubai Islands or a serene villa in The Valley, the diverse range of new projects ensures there’s something for everyone.
As we approach the year’s end, Dubai’s property market shows no signs of slowing down, offering a wealth of opportunities for those looking to invest in the city’s ever-growing real estate sector.
Key Takeaways:
- Nearly 40,000 new off-plan units expected in the last four months of 2024.
- Dubai’s property market is set to exceed 126,000 new units for the year.
- August 2024 recorded the highest-ever August transaction volumes, with 16,145 sales.
- Property prices are at an all-time high, reaching AED 1,431 per square foot.
- Continued market growth is expected for the remainder of 2024, barring any major disruptions.
Dubai’s real estate market is hotter than ever, and the coming months will be pivotal for buyers and investors looking to make the most of this remarkable growth.
