Have you been asking about the general performance of the real estate market in Dubai? For many, the know-how of market trends can be vital, especially at the same time as considering investments. As of July 2024, Dubai’s property sales reached AED 49.6 billion. This marks a brand new level for the year and shows a massive increase in growth as compared to the same month last year.
Dubai Property Sales Rise To AED 49.6 Billion In July
Significant Growth In Transactions
In July, there were 15,994 transactions, a 43.2% increase in volume compared to July 2023. This increase indicates a growing interest in Dubai’s real estate market. The value of these transactions rose by 31.63% compared to last year. This consistent growth suggests a robust market that continues to attract investors.
The luxury market also saw notable activity. The most expensive property sold was a villa at a prominent location on Palm Jumeirah, fetching AED 103 million. This sale highlights the strong demand for high-end properties in Dubai. Apartment sales showed the most significant increase. In July, 12,429 apartments were sold, a month-on-month rise of 59.1%.
The total value of these sales reached AED 22.3 billion. This surge indicates a growing preference for apartment living in Dubai, likely due to their affordability and availability in key locations. Villa sales also saw an increase, with 2,336 villas sold for a total of AED 14.3 billion. This represents an 8.6% increase compared to July 2023.
The market for commercial properties also experienced growth. There were 386 transactions amounting to AED 869.5 million, a 27.4% increase in volume compared to last year. Plot sales experienced a slight decline in volume, with a 6.5% decrease compared to July last year. However, the value of these sales remained strong, totaling AED 12.1 billion for 843 plots. This suggests that while fewer plots were sold, the ones that were sold held significant value.
Comparison To Previous Months
The July 2024 figures surpassed the previous best for the year, which was June’s total of 14,370 properties worth AED 46.48 billion. This continuous upward trend demonstrates the consistent strength of Dubai’s real estate market and growing investor confidence. Over the past five years, Dubai’s property sales in July have steadily increased. In 2020, the total sales were AED 4.4 billion (2,300 transactions).
In 2021, it rose to AED 11.1 billion (4,400 transactions). By 2022, sales reached AED 21.2 billion (7,200 transactions), and in 2023, it was AED 37.7 billion (11,200 transactions). This year, the market has nearly reached AED 50 billion with almost 16,000 transactions, showcasing substantial growth and market maturation. Jumeirah Village Circle emerged as the top-performing area in July, with 1,265 property transactions worth AED 1.3 billion.
This area’s popularity may be attributed to its range of affordable housing options and convenient location.
Also Read: Dubai Real Estate: Property Broker Announces Record-Breaking AED105mn Tilal Al Ghaf Villa Sale
Off-Plan Sales
Off-plan projects saw significant activity, with Palace Residences at Dubai Hills Estate being the best-selling project. A total of 915 apartments were sold for AED 2.3 billion. For villas, the top-selling off-plan project was at Dubai South, where 114 units were sold for AED 406.6 million.
Off-Plan Vs. Ready Properties
In terms of sales, off-plan properties dominated the market. They accounted for 67% of the total value and 66% of the total volume, while ready properties made up the remaining 33% in value and 34% in volume. This preference for off-plan properties indicates investor confidence in Dubai’s future developments.
Distribution Of Property Prices
The distribution of property prices shows a diverse market catering to different budget ranges. About 10% of the total sales were for properties worth more than AED 5 million. Properties in the AED 1-2 million range accounted for 31% of the sales, while 30% were below AED 1 million. Properties in the AED 2-3 million range made up 17%, and those between AED 3-5 million accounted for 13%.
The consistent growth in Dubai’s real estate market demonstrates strong investor confidence. With increasing transactions and values, the market continues to show resilience and appeal. This upward trend is likely to continue as Dubai remains a key destination for real estate investment.
Arshad Darbar’s Thoughts
Arshad Darbar, a seasoned professional in the real estate market, views the recent surge in Dubai’s property sales with optimism. He believes that the July 2024 figures, reaching AED 49.6 billion, underscore the robust health of Dubai’s real estate sector. According to Darbar, the significant increase in transactions and values reflects a growing confidence among investors, both local and international. He notes that the diversity in property sales, ranging from luxury villas to affordable apartments, indicates a well-balanced market catering to various buyer needs.
Darbar highlights the increasing preference for off-plan properties as a positive sign of the market’s future growth potential. He points out that the high volume of off-plan sales suggests a strong belief in Dubai’s ongoing development projects. Furthermore, Darbar is particularly impressed with the resilience shown by the market despite global economic challenges. He believes that the continuous upward trend in sales and values is a testament to Dubai’s position as a leading real estate hub. Darbar anticipates that this momentum will likely continue, driven by innovative projects and favorable market conditions.
Conclusion
July 2024 has marked a record-breaking month for Dubai’s real estate market, showcasing remarkable growth in both sales volume and value. This surge reflects a thriving and dynamic market, attracting a wide range of investors and buyers. The variety of available properties, catering to different budgets and preferences, has played a significant role in this success. From luxurious apartments to affordable housing options, Dubai’s real estate offerings are diverse and appealing.
The data not only highlights a growing market but also shows an increasing diversification, providing ample opportunities for all types of buyers and investors. Whether seeking a high-end investment or a more modest home, Dubai continues to present itself as an attractive and lucrative option for those looking to invest in the region’s booming real estate sector. This upward trend suggests a positive outlook for the future of Dubai’s property market.
