Dubai Real Estate Market Overview - September 2024

Sales Volume and Market Growth

Dubai's real estate market continues to exhibit strong growth, with 18,045 transactions recorded in September 2024, representing a 32.7% increase compared to September 2023. The total sales value reached AED 44.6 billion, up 18.1% year-over-year, underscoring the robust demand across various property segments. The average price per square foot climbed to AED 1,539, reflecting a 7.8% increase compared to the same period in 2023.

Breakdown by Property Type

1. Apartments:

   • 14,155 units sold (up 35.9% vs. September 2023)

   • Sales value: AED 24.4B

   • Average price: AED 1.3M (up 5.1%)
     
     

2. Villas:

   • 2,935 units sold (up 29.2% vs. September 2023)

   • Sales value: AED 12.2B

   • Average price: AED 2.9M (down 5.7%)
     
     

3. Commercial Properties:

   • 358 units sold (down 6.5% vs. September 2023)

   • Sales value: AED 797M

   • Average price: AED 1.5M (up 36.7%)
     
     

4. Plots:

   • 597 transactions (up 12.6% vs. September 2023)

   • Sales value: AED 7.1B

   • Average price: AED 5.4M (up 9%)
     
     

Rental Market Performance

Dubai's rental market also experienced significant growth, driven by high demand for both apartments and villas:

• Apartments: Average rent reached AED 82,000, reflecting a 17.1% increase from September 2023.
  
  

• Villas: Average rent grew to AED 180,000, a 2.9% increase.
  
  

• Commercial Properties: The average rent rose to AED 65,500, marking a 19.1% increase compared to the previous year.
  
  

Market Share by Category

• Apartments: 55% of total property sales value

• Villas: 27%

• Plots: 16%

• Commercial Properties: 2%
  
  

Top Performing Areas in September 2024

1. Jumeirah Village Circle (JVC): 1,750 units

2. Dubai South: 1,000 units

3. Dubai Hills Estate: 900 units

4. Sobha Hartland 2: 850 units

5. Business Bay: 800 units

These areas saw the highest number of property transactions, driven by the availability of off-plan projects and high rental yields.

Property Sales Volume by Price Range

• Below AED 1M: 29%

• AED 1-2M: 33%

• AED 2-3M: 19%

• AED 3-5M: 13%

• Above AED 5M: 6%
  
  

First Sale vs. Resale Transactions

• First Sale accounted for 71% of the sales volume and 66% of the total sales value, highlighting the continued interest in off-plan properties.
  
  

• Resale transactions made up 29% of the volume and 34% of the sales value.
  
  

Mortgage Transactions

There was a sharp increase in mortgage activity, with 4,211 transactions, marking a 38.9% increase year-over-year. The total mortgage value surged to AED 16.5 billion, representing an 80.4% increase compared to September 2023.

Top Projects by Sales Value

Most Expensive Apartments Sold:

1. One At Palm Jumeirah, Palm Jumeirah: AED 275M

2. Six Senses Residences Dubai Marina: AED 99M

3. Six Senses Residences The Palm, Palm Jumeirah: AED 63M

4. One Canal, Dubai Water Canal: AED 60M

5. Luxury Family Residence III, Business Bay: AED 58M
   
   

Most Expensive Villas Sold:

1. Eome, Palm Jumeirah: AED 203M

2. Amali Island, The World: AED 79M

3. MBR District 1, Phase II Villas: AED 36M

4. Karl Lagerfeld Villas by Taraf, Wadi Al Safa 3: AED 25M

5. Nad Al Sheba Gardens, Phase 6: AED 24M
   
   

Best-Selling Projects in September 2024

Off-Plan Apartments:

• Golf Point: 482 units, AED 615.4M

• Damac Hills (2) - Elo 2 & 3: 359 units, AED 278.6M

• Club Place: 270 units, AED 597.3M

• Address Residences L, Dubai Hills Estate: 255 units, AED 690.3M

• One Park Central by Iman: 210 units, AED 230M
  
  

Off-Plan Villas:

• Damac Riverside - Lush: 225 units, AED 612.2M

• Damac Riverside - Ivy: 161 units, AED 448.3M

• Damac Riverside - Sage: 161 units, AED 469.7M

• Athlon by Al Dar 1: 160 units, AED 523.3M

• The Valley - Venera: 133 units, AED 419.4M
  
  

Ready Apartments:

• Central Park: 123 units, AED 55.3M

• 7 Seasons: 77 units, AED 42.5M

• Remraam: 71 units, AED 55.2M

• Newbridge Hill 3: 60 units, AED 55M

• Sky Courts: 42 units, AED 25.3M
  
  

Ready Villas:

• Arabian Ranches III - Ruba: 18 units, AED 57.7M

• La Rosa 6: 17 units, AED 50.4M

• The Valley - Eden: 17 units, AED 44.6M

• The Fields at D11 - MBRMC: 11 units, AED 45.5M

• Emirates Living - Springs 11: 11 units, AED 37.7M
  
  

Top Nationalities Investing in Dubai's Real Estate in 2024

1. British: Representing around 12% of transactions, UK nationals are attracted to Dubai’s lifestyle and opportunities, with Palm Jumeirah and Downtown Dubai being top investment areas.
   
   

2. Indian: Dominating with 20% of all transactions, Indian investors favor areas like Dubai Marina for its waterfront lifestyle and rental income potential.
   
   

3. Pakistani: Accounting for 10% of the total transactions, Pakistani investors are drawn to off-plan properties, leveraging flexible payment plans and travel convenience.
   
   

4. Chinese: With 8% of transactions, Chinese investors focus on luxury properties in Business Bay and Dubai Creek Harbour, benefiting from UAE-China trade relations.
   
   

5. French: French nationals make up 7% of total transactions, investing heavily in luxury areas such as Palm Jumeirah and Emirates Hills.
   
   

Historical Sales Data

• 2014: 3,500 transactions, AED 10B

• 2023: 15,000 transactions, AED 35B

• 2024: 18,500 transactions, AED 42B
  
  

Conclusion

The Dubai real estate market in September 2024 is characterized by significant growth across most property sectors, with strong demand for off-plan properties and increasing rental yields. Apartments continue to dominate sales, while villa prices have softened slightly. High-value transactions in luxury areas and strong interest from international investors signal ongoing confidence in Dubai’s real estate market as a prime destination for investment.

• All data is provided by DXB Interact