Dubai's real estate market achieved a new milestone in September with 18,038 transactions, marking an all-time monthly high. This figure surpasses the previous record of 17,139 transactions set in May, indicating sustained growth and investor confidence. Residential sales dominated the market, accounting for over 95% of the total transactions, with off-plan sales making up 73% of the total. Leading the charge were market giants Emaar, followed by Damac Properties and Sobha.
The first nine months of 2024 have seen property sales nearly match the levels of the previous year, with September's performance setting a new benchmark. According to Property Monitor, sales from January to September 2024 reached over 131,000, just under 2% less than the total sales for 2023. With three months left in the year, the market is projected to see a year-on-year increase of nearly 30%, potentially reaching 170,000 unit sales.
Henry Bacha, CEO of Property Monitor, highlighted that by the end of 2024, sales activity will have quadrupled compared to pre-Covid levels. This growth is attributed to the UAE and Dubai governments' strategic plans and proactive approach to market evolution. Bacha also noted that September 2024 was another groundbreaking month for Dubai's real estate sector, with new records in both sales transactions and prices.
Property prices in Dubai rose by 1.14% in September compared to August, averaging Dh1,448 per sq ft. The median prices for apartments, townhouses, and villas were Dh1.3 million, Dh2.76 million, and Dh7 million, respectively. Mortgage activity also surged, with transactions up 16.6% month-on-month, reflecting investor confidence in the market.
A robust pipeline of new projects is expected to deliver a record 90,000 homes over the next two years, driven by the large number of projects launched post-pandemic. Currently, 1,034 projects are under construction, adding 288,020 units to the existing pipeline. The market is on track to surpass the 2023 record of 101,654 yearly launched units, with 2024 already seeing 99,779 units launched.
Firas Al Msaddi, CEO of fäm Properties, emphasized that 41,800 new units are set to enter the market in 2025, rising to 48,400 in 2026. This growth is expected to continue, driven by projects launched from 2025 onwards. However, the rapid expansion is placing pressure on developers and contractors to streamline procurement processes, facing challenges such as logistics, rising costs, and geopolitical risks.
Source link: https://www.khaleejtimes.com
