Dubai’s residential units sold so far in 2024 are close to matching the total for 2023, according to data released on Monday.
As per Emirates NBD’s Residential Market Monthly, 104,250 units have been sold year to date (YTD), just 14,000 shy of the total transactions from last year.
“We expect activity to remain stable through the rest of the year, likely setting a new record for residential units sold across the city,” noted Swapnil Rajasekharan Pillai, Director of Real Estate Research at Emirates NBD.
Compared to the same period last year, August saw a 32% year-on-year rise in units sold, while the YTD transactions increased by 31%, up from 79,300 between January and August 2023. The total property sales value in August reached AED 37.23 billion, down from July’s AED 40.5 billion. With these transactions, Dubai’s total YTD sales hit AED 265 billion, marking a 30% year-on-year increase and a new record for the city. “The rise in both transactions and average sales prices, along with a surge in luxury and high-end project launches, has driven this substantial increase in total property value transacted across the city,” Pillai added.
Off-plan properties continue to dominate as the preferred investment, according to Emirates NBD’s research. In August, 10,470 units or 66% of all transactions were off-plan sales. While overall demand and sentiment have improved, off-plan transactions have seen the sharpest rise. “In 2018, 17,600 off-plan units were sold, while more than 69,100 off-plan units have been sold by August 2024. At this pace, we could surpass 100,000 off-plan transactions for the year, representing a 468% jump from 2018,” Pillai explained.
Jumeirah Village Circle (JVC) was the leading area for off-plan sales in August, consistently ranking among the top three throughout the year, with 1,000 units sold in August. Dubai South followed closely with around 860 sales, drawing renewed investor interest following government announcements regarding the Al Maktoum International Airport. In the first half of the year, this area saw only 722 off-plan sales, but over the past two months, more than 1,290 units have been sold.
Bu Kadra, a sub-market near Sobha Hartland, has emerged as another rising area for off-plan transactions, with 780 units sold in August and over 1,900 units sold this year.
Villa sales remained steady, with 3,000 villa units sold in August, three-quarters of which were off-plan. Industry sources indicate that demand for ready properties in established areas has slowed as landlords hold onto properties or expect high premiums, leading many buyers to opt for off-plan units.
Dubai South led the market for off-plan villa developments, with 670 units sold, accounting for 30% of total off-plan villa sales in August. Key projects such as Athlon by Aldar and The Valley by Emaar saw nearly 1,000 transactions. For ready villa sales, Damac Hills 2, Villanova, and Al Furjan were the most active areas. “Affordable price points, proximity to commercial hubs, and ample retail support have driven demand in these locations,” Pillai noted.
Dubai is one of the few global cities with significant new supply. The city has launched over 93,000 new units across various sub-markets so far this year, the highest in its development history, according to the data.
Unlike past years when supply was focused in a few master-planned communities, most new launches this year have been part of existing master-planned areas or stand-alone projects. “We’ve also seen a rise in supply from smaller developers with limited previous track records. Going forward, we expect supply to remain strong as developers capitalize on the market’s growth. Most new supply will likely come from areas like Dubai South, JVC, Al Furjan, and Business Bay, with further launches anticipated in areas such as Bu Kadra, Dubai Maritime City, Dubai Islands, and along the E311 and E611 roads,” Pillai stated.
Apartment prices have risen by an average of 12% year-on-year across the city’s mature sub-markets, though prices have remained stable month-on-month. The most significant price increases occurred in areas with limited new supply and minimal development potential.
Villa prices have seen stronger growth than apartments, with a 23% year-on-year increase in August. Like apartments, villa prices have stayed relatively stable month-to-month. “New project launches have often been priced at a premium to existing developments, with some premiums as high as 30%. This will likely drive up average prices in a few established communities once these projects are completed,” Pillai concluded.
