Dubai’s real estate marketplace keeps growing at an excellent rate, leaving many people asking the same question: how long will this upward trend last? For investors, homebuyers, and those searching the market, the speedy increase in sales and property values may additionally appear thrilling, however, it furthermore will increase concerns about affordability and supply. Property profits in Dubai reached a superb $10.4 billion (AED38.55 billion) in August 2024. This marks a tremendous duration in Dubai’s real estate area.
Dubai Real Estate: Property Sales Hit $10.4 Billion In August
A Record-Breaking August
In August 2024, Dubai saw a total of 15,000 property transactions. This is a huge leap compared to previous months and years, showing the growing demand for real estate in the city. The total value of these transactions amounted to AED38.55 billion ($10.4 billion), setting a new benchmark for the market. This strong performance points to continued confidence in Dubai’s real estate, despite the ongoing issues of limited supply and rising prices.
Dubai’s real estate prices have also increased sharply. The price per square foot has reached AED1,431, an 18 percent rise from the same period last year. This shows that demand is not only high in terms of the number of transactions but also in terms of the value people are willing to pay for properties.
Off-Plan Properties Dominate The Market
Off-plan properties have taken a leading position in the market, representing 68 percent of all transactions in August 2024. A total of 10,285 off-plan deals were made, with a combined value of AED22.9 billion. This is the highest value ever recorded for off-plan properties in Dubai. The popularity of off-plan properties can be linked to several factors.
These properties are often priced more competitively than ready-built homes, and buyers may also benefit from flexible payment plans offered by developers. This makes off-plan properties especially attractive to investors and first-time buyers. The dominance of off-plan properties in the market has also helped boost the overall transaction numbers. As developers continue to launch new projects, the market sees a steady flow of options for buyers looking for off-plan investments.
Average Sale Prices In August
In August 2024, the average sale price for apartments was AED1.51 million, townhouses were priced at AED3.13 million, and villas reached an average of AED8.30 million. These figures reflect the diverse nature of Dubai’s property market. Buyers can find properties across a wide range of price points, from affordable apartments to high-end luxury villas. However, the rising prices may pose a challenge for some buyers, particularly those looking to purchase their first home.
Certain areas in Dubai continue to attract the most interest from buyers. For apartment sales, Dubai Marina, Business Bay, and Jumeirah Lake Towers were the top locations in August 2024. These areas are known for their prime locations, modern infrastructure, and proximity to key business and entertainment hubs. For villa sales, Reem, Damac Lagoons, and Arabian Ranches 3 led the market.
These communities offer spacious homes and a family-friendly environment, making them popular choices for buyers seeking a villa lifestyle. The variety of locations that are performing well highlights the diverse needs of property buyers in Dubai. Whether they are looking for an apartment in a central location or a villa in a quieter suburban area, buyers have plenty of options to choose from.
Also Read: Dubai Real Estate Sector Records $3.9bn In Transactions Last Week
Increase In Mortgage Transactions
One of the key trends noted in the report is the increase in mortgage transactions. In August 2024, mortgage buyers accounted for 58 percent of all transactions, up from 51 percent in the previous month. This indicates that more buyers are financing their purchases through mortgages rather than paying in cash. The rise in mortgage transactions could be linked to the rising property prices, which may be pushing more buyers to seek financial assistance. It may also reflect an increasing number of first-time buyers entering the market, who are more likely to use mortgages to purchase their homes.
Investor Activity In The Market
Investors continue to play a dominant role in Dubai’s property market. According to the report, 60 percent of all buyers in August 2024 were investors. This shows that Dubai remains an attractive destination for property investment, both for local and international buyers. The high level of investor activity is likely driven by several factors. Dubai’s strong economy, its position as a global business hub, and the potential for high returns on investment make it an appealing choice for property investors.
Additionally, the steady increase in property prices suggests that investors can expect their investments to appreciate over time. Despite the impressive transaction numbers, the report also highlights a key challenge facing Dubai’s real estate market: limited supply. As demand continues to grow, the supply of available properties has not kept up. This has contributed to the rising prices, with the average price per square foot reaching AED1,431 in August 2024.
The limited supply of properties, particularly in sought-after areas, has led to increased competition among buyers. As a result, prices are likely to continue rising in the coming months, making it more difficult for some buyers to enter the market.
Arshad Darbar’s Thoughts
Arshad Darbar, a seasoned real estate expert with several years of experience, views the recent news of Dubai’s property market hitting $10.4 billion in sales for August 2024 as a testament to the city’s growing appeal to both local and international buyers. According to Darbar, the sharp rise in demand, particularly for off-plan properties, reflects Dubai’s ability to attract investors despite the challenges of limited supply and rising prices. He believes that the increase in mortgage transactions, up to 58 percent, is a clear indicator of how more buyers are relying on financing options to enter the market.
This trend, Darbar notes, suggests that the market is becoming more accessible, but it also highlights potential affordability concerns as prices continue to climb. He points out that the growing gap between supply and demand may put upward pressure on prices in the future. For Darbar, Dubai’s real estate market remains a strong investment opportunity, but buyers and developers must remain mindful of the potential for price fluctuations.
Conclusion
Dubai’s property market continues to break records, with property sales hitting $10.4 billion in August 2024. The demand for real estate, particularly off-plan properties, remains strong, despite rising prices and limited supply. While the future looks bright for Dubai’s real estate market, the ongoing issue of limited supply and rising prices will need to be addressed to ensure that the market remains accessible to a wide range of buyers.
