With nearly 200 additional projects in the pipeline, the Dubai property market is set to see a strong influx of new project launches, as reported by the latest Property Monitor report released by Cavendish Maxwell. In the first 8 months of the year, new project launches reached nearly 86,000 units with a total sales value of Dh213.7 billion, indicating that the market is on track to surpass last year’s sales value of Dh272 billion. The report anticipates that new launches will continue at historically high levels throughout the remainder of 2024, with an estimated 35,000-40,000 units entering the off-plan market.
The growth in new development activity is expected across various pricing segments and communities in Dubai, particularly in areas like Dubai Islands, Jumeirah Garden City, Dubai Maritime City, Motor City, Dubai Land Residence Complex, The Valley, The Acres, The Oasis, and The Height Country Club. The surge in off-plan project sales has attracted many foreign developers to the city in the past two years, catering to the increasing demand from residents and investors. The market has also seen a substantial increase in population, reaching 3.781 million, leading to a spike in property prices and rentals.
In August, Dubai witnessed a record increase in sales transactions, reaching a total of 16,145 transactions, marking the highest-ever volume for the month of August and the second-highest month overall. Property prices continued to climb to all-time highs, reaching Dh1,431 per square foot, which is 82.4% above the market trough of April 2009 and 16.03% above the peak of September 2014. Despite the surge in prices, buyer confidence remains strong, with sustained momentum in the property market.
According to the Cavendish Maxwell report, the current market conditions are likely to provide for continued growth throughout 2024, barring any significant economic, geopolitical, or global events. Prices have increased by 17.7% year-on-year in August, marking 42 straight months of year-on-year increases. On a year-to-date basis, prices have risen by 11.5% in August 2024 compared to 10.9% in August 2023. The surge in off-plan project sales and high transaction volumes reflect sustained buyer confidence in the market.
Sales transaction volumes in August increased marginally by 0.2% compared to July 2024, reaching 16,145 transactions. The split between Oqood and Title Deed property transactions favored the former, with Oqood registrations accounting for 64.8% of all transactions, up by 6.5% month-on-month. The strong momentum in Dubai’s property market, driven by significant price growth and high transaction volumes, is expected to continue in the upcoming months, providing lucrative opportunities for investors and developers alike.
