Our monthly real estate market sales report, unveils a remarkable surge in activity, reflecting the robust demand and investor confidence in Dubai's dynamic property landscape.
Dubai real estate market continued its impressive growth trajectory in September 2024, setting new records in transaction volumes.
Record-Breaking transactions volume
A total of 17,503 sales transactions were recorded in September, reflecting a 6.5% increase from the previous month and a 32.7% rise compared to the same month last year. This was the second highest month this year after May, with volumes over 17.5k transactions.
Sales transactions value surge compared to last year
43.57 billion AED (or 11.87 billion USD) in total sales value representing a -8.8% lower value than previous month and 18.1% higher from September last year.
Market Trends
Source: DXB Interact
66% of total sales transactions volume was for off-plan properties, making a 33.1% increase compared to the same time last year.
34% of total sales volume for the month were for ready properties. This presented a 7.1% increase compared to same month last year.
Couple of key consideration people are looking at when thinking of buying off-plan vs ready properties are:
Ready properties can offer immediate returns by being able to rent it out and generate income while it provides transparency for buyers since performance can be verified through data, especially in prime locations with high rental yields.
Off-plan properties attract investors due to lower promotional prices upon project launch, flexible payment plans directly with the project developer depending on the downpayment, potential capital gains, continuous population growth which is expected to absorb the future supply, the business-friendly environment existing in UAE, and strong buyer protection laws.
Jumeirah Village Circle (JVC) and Dubai South were the top choices for investors, with a notable increase in demand in these areas.
Dubai Hills Estate and Sobha Hartland 2 were also among the top preferred areas for last month.
The percentage share of overall transactions volume by asset class* for September was as follows:
Apartments 81 %
Villas and Townhouses 11 %
Commercial properties 2 %
Land plots 9 %
Investor Insights
International Buyers: the market continued to attract a diverse range of international buyers, with significant interest from Europe, Asia, and the Americas.
End-User Purchases: there was an increase in end-user purchases for off-plan properties, indicating a strong confidence in the long-term prospects of the Dubai real estate market.
Foreign investors continue to be attracted of Dubai's thriving ecosystem and the benefits that the market offers, such as:
Freehold property ownership and Zero property tax
Zero personal income tax or capital gains tax, or withholding tax
100% foreign business ownership
100% repatriation of capital investment and total profit earned
10-year investor Visa
Investor-friendly policies providing foreign investment protection
One of the world’s top tourist centers
In the beginning of October The Executive Council of Dubai has approved a series of new plans aimed at boosting Dubai’s leadership in several sectors over the next decade which include the Education Strategy 2033 and the Real Estate Strategy 2033
“We approved the Real Estate Strategy 2033 to help achieve the Dubai Economic Agenda D33, raising real estate transactions to AED1 trillion by 2033 and doubling the sector’s contribution to economic diversification. The strategy also boosts Emirati competitiveness and promotes home ownership to enhance family stability.”
H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defense of the UAE, and Chairman of The Executive Council of Dubai WAM
In the beginning of September, the Legal Support Section at Dubai Land Department has organized a focused workshop for real estate developers, aimed to strengthen collaboration and partnerships, exchange knowledge on best practices in the real estate sector, and provide a safe and transparent investment environment for both developers and buyers.
UBS Global Wealth Management Real Estate Bubble Index 2024 edition is out. Here are few highlights:
Dubai’s real estate has been in high demand since 2021
Transaction numbers have reached new all-time highs every year and excess supply has been absorbed
In the last four quarters, housing prices increased by almost 17% and are 40% higher than 2020
Dubai experienced the strongest bubble risk score increase among all cities analyzed in this report over the last four quarters.
Conclusion
The market’s resilience and attractiveness to both local and international investors underscore Dubai' sales position as a leading global real estate hub.
Stay tuned for timely real estate investment insights and updates as we continue to monitor this continued evolving landscape in the emirate.
Source: Dubai Land Department, DXB Interact
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