Dubai Real Estate Market Achieves With-High Annual Sales of Billions
With yearly sales expected to surpass AED 500 billion, Dubai's real estate industry is teetering on the brink of an unparalleled milestone.
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The previous yearly high was established in 2023 at 409.8 billion AED, but as of October 2024, the sector has registered transactions of 435.6 billion AED from 150,651 deals. Sales reached AED 61.1 billion from 20,461 transactions in October, a fantastic increase compared to the same month in 2020. This exceptional development trend is further supported by the figures.
Important Points:
- Sales of Villas: There was a 102 percent rise in volume from October 2023 to October 2024, with 3,830 villa transactions totalling AED 20.5 billion.
- Selling Apartments: An increase of 67.2% over the same period last year resulted in 15,662 flat sales valued at AED 28.1 billion.
- Real Estate Owned by Businesses: The commercial sector had 424 sales totalling 916.2 million AED, with a 7.1% increase to 1,585 AED per square foot as the average price.
- A CEO of a company said the following thing: In a property market where supply is at highest alongside record transaction volumes, they are seeing a clear path of sustainable demand.
A total of 1487 transactions worth around AED 1.5 billion were done for Jumeirah Village Circle in October. Business Bay had 1,135 transactions totalling AED 2.6 billion, and Dubai Hills Estate had 867 transactions equivalent to AED 2.1 billion.
The strong infrastructure, welcoming investment climate, and strategic efforts that Dubai is implementing to boost its worldwide status are all contributing factors to the city's increasing popularity among investors, both domestic and foreign.
With the year coming to a conclusion, the Dubai real estate market is poised to hit and maybe exceed the AED 500 billion sales record, demonstrating its strength and rapid expansion in the global property market.
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The Property Market in Dubai
With an annual sales average of over AED 43.56 billion, Dubai is well on its way to reaching the massive AED 500 billion mark by year's end. According to an update presented by fäm Properties to announce the transactions accomplished in October, there was a significant rise of 798% compared to October 2020, with a total of about AED61.1 billion in acquisitions. This expansion over the previous five years is clearly visible.
Current Effect on Residential and Business Real Estate
With a total of AED20.5 billion changed hands in October, villa sales were up 102% year-on-year. Apartment sales also did well with 3830 units sold and a number of 15662 transactions touching AED 28.1 billion, a 67.2 percent increase. Similarly, 424 deals worth AED916.2m were recorded in commercial property sales, which represents a 1.9% decrease from the previous October. Commercial properties had an average price per square foot of around AED1585 up 7.1%.
Sales Peaks in October Over a Five-Year Period
In 2020 there were 3300 property sales in Dubai which reached AED 6.8 billion. In 2021 there were 5300 sales which reached AED 13.1 billion. In 2022 there were 8700 sales which reached AED 25.2 billion. In 2023 there were 12100 sales which reached AED 39.48 billion. This year October saw a new record of 61.1 billion.
Areas & Projects That Achieved the Better Results in October
In October, a number of sectors maintained high levels of transaction volume and value. The high number of transactions, 1487 totalling AED1.5 billion, was recorded in Jumeirah Village Circle. There were 1135 deals at a total of AED2.6 billion in Business Bay and 867 deals worth a total of AED2.1 billion in Dubai Hills Estate. The other top-demanded areas were Motor City (819 transactions worth AED 973.4 million) and Dubai South (847 transactions worth AED 877.6 million).
Greenridge, which saw 332 villas sold for AED1.18 billion was the top-selling off-plan project in terms of value. Sobha Orbis had the highest number of off-plan flat sales, with 761 units selling for AED891.6 million. There were 92 transactions totalling AED 258.9 million for Canal Front Residences which was top for the ready-to-move-in apartment sales. There were 16 villas sold for AED42.4 million where Shams Townhouses was the top for sales in ready to move villa properties.
Market and Pricing Situation
Eight percent of the properties were priced over AED 5 million, while thirty-three percent were priced between AED 1 and 2 million. There was a 27% share of sales below AED 1 million, a 19% share between AED 2–3 million, and a 13% share between AED 3–5 million. The primary market source is the developer-side sales, which accounted for the bulk of the market at 69% volume and 66% value, while the secondary market source is the sum of all sales, which amounts to 31% volume and 34% value.
With the year coming to a close, the Dubai real estate market is poised to achieve record-breaking sales of around AED 500 billion, thanks to investors who are still very interested and have enormous money to spend in both local and international markets.
Conclusion
The real estate market in Dubai had a fantastic October, increasing yearly records, and it is expected that sales will significantly exceed AED 500 billion by the end of 2024. By the end of October, 2024 sales had surpassed the previous record set at the end of 2023 by 132,628 transactions, reaching AED435.6 billion. This was achieved through 150,651 transactions.
