Dubai Real Estate Market Hits Record AED 141.9 Billion in Q3 2024
The real property marketplace in Dubai is undergoing a steady increase that is impossible to slow down. It is expected to reach new levels in the third quarter of 2024, with sales totaling AED 141.9 billion ($38.6 billion), setting a new record.
This remarkable achievement has far exceeded prior records set by Q2, which was AED 124.07 billion, indicating an increase of 30.1 percent year-on-year.
Soaring Sales Volume and Transaction Growth
According to the most recent market report from fam Properties, a staggering 37.9 percent rise in transaction volume was observed, with total sales of 50,423 during the third quarter.
In comparison to the second quarter of 2024, Dubai also improved its sales by 16.6 percent, further cementing its position as a dominant international participant in the real estate sector.
Apartments Continue to Dominate Sales
Most of these transactions came from the sale of apartments, accounting for 70% of the total number. A staggering figure of 39,058 apartment sales was reported in the third quarter of 2024, bringing the total to AED 70.5 million. This is a significant improvement in sales volume of 43.9 percent compared to the same period in the prior year.
Villas and Plots See Impressive Growth
The market for villas in Dubai also saw an improvement, with 8,156 villas sold in the quarter, totaling AED 39.2 billion. This is a 16.6 percent drop in the volume of transactions compared to the third quarter of 2023 and an 18.4 percent improvement compared to Q2.
Demand for land increased due to the selling 2,102 plots, which made AED 29.9 billion. This is a 45.9 percent growth in the volume of transactions compared to the same period in the previous year and a 42.3 percent boost from Q2.
Commercial Real Estate Gains Ground
Recently, the commercial real estate market has seen a slight increase. For instance, 1,112 sales were recorded during the time frame, generating AED 2.3 billion; this represents a 12.1 percent boost in sales from the revenue generated during the same period in the third quarter of 2023.
Rising Property Values Reflect Market Strength
In recent times, there has been a definite price increase for housing, which has been rising, and the price for a square foot of Turbo is predicted to hit AED 1,511 by the third quarter of 2024.
This is an impressive improvement from the AED 1,017 recorded in 2021. The year 2021 will see the price rise to AED 1,179 during the calendar year 2022 and AED 1,405 in the previous year, indicating an improvement in the demand for and growth of the property market in Dubai.
A Resilient and Booming Market
"The figures once more emphasize the resilience of the Dubai real estate market and the consistent growth seen in recent years, which continues to enhance investor confidence," said Firas Al Msaddi, CEO of fam Properties.
This ongoing upward trend reinforces Dubai's status as a leading destination for real estate investment, attracting growing interest from global investors, as well as buyers from the local and regional markets.
Property sales in Dubai in Q3 on a five-year basis have grown dramatically in the past five years, from AED 18.1 billion in 2020, AED 42.4 billion in 2021, AED 69.5 billion in 2022, and AED 109.2 billion in 2023.
The highest current level reached in 2024, AED 141.9 billion, demonstrates the continued positive trend of the market.
Top Performing Areas in Q3 2024
The top performing areas of Dubai during the quarter ended March 2024 include:
- Jumeirah Village Circle: 4,467 transactions — AED 5.33 billion
- Dubai South: 2,910 transactions — AED 8.25 billion
- Business Bay: 2,651 transactions — AED 7.22 billion
- Wadi Al Safa 5: 238 transactions — AED 5.3 billion
- Dubai Hills Estate: 2,358 transactions — AED 7.38 billion
Most Expensive Sale in Q3 2024
The purchase of Palm Jumeirah, one of the most luxurious apartments in Dubai, has reached AED 275 million. This marks the highest recorded price for any property sold in Q3. It was also one of the most enthralling transactions of the third quarter.
Properties in the AED 1 - 2 Million Range Lead Demand
Properties valued from AED 1 million to AED 2 million were considered to be the preferred price segment, accounting for 31% of sales. Additionally, properties sold for less than AED 1 million comprised 29% of transactions, 18% were in the AED 2-3 million range, and 14% were in the three to five million AED range.
Properties over five million AED made up 8% of sales. The differing prices of properties suggest a significant variation in the types of investors who come to Dubai.
New Developments Outpace Resales
Modernization is an important aspect of the present state of the real property market in Dubai because the developers' primary sales are higher than secondary sales in the resale market. When looking at the numbers, first sales comprised 68% of all transactions in terms of volume, while resales accounted for only 32%.
Similarly, new developments accounted for 63% of the sales value, while only 37% came from the resale market.
The real property marketplace within Dubai is experiencing massive expansion and growth without any indication of slowing down.
Due to the continuous expansion across all areas—villas, apartments, plots of land, and commercial properties—the emirate is a magnet for an array of investors from various parts of the world.
