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Q3 2024 : Dubai's Real Estate Market Record its Busiest Quarter in History

Date: 25-Oct-2024 | Category: News & Updates

Strong Growth in Dubai's Real Estate Market

The third quarter of 2024 marked an incredible milestone for Dubai’s real estate market, making it the busiest quarter ever recorded. This surge reflects a strong sense of trust from investors. We saw a significant increase in demand for both off-plan and ready properties, which helped push the market to new heights.

Sales Volume Rises

In Q3, Dubai recorded a total of 50,423 property sales, a 16.6% jump from the previous quarter and a 37.9% rise compared to last year. These numbers demonstrate the growing interest in Dubai’s property market, as more people invest in real estate.

Apartments Lead the Way

Apartments dominated the market with 39,054 transactions, reflecting a 15.6% increase from the previous quarter and a 43.9% jump compared to Q3 2023. Many buyers are choosing apartments likely because they are more affordable and convenient for city living. Villas also saw strong growth with 8,156 sales up by 18.4% from the last quarter and 16.6% compared to Q3 last year. The commercial property sector had 1,111 sales marking a 12% rise from the same time last year. Plot sales surged with 2,102 transactions marking a 42.3% increase quarter-over-quarter and a 45.9% jump from Q3 2023.

Higher Property Prices

The average price per square foot in Dubai is now 1,511 AED showing a 7.5% increase from last year. This price growth indicates a healthy market where buyers are willing to spend more for high-quality properties. With the market continuing to expand, prices are expected to rise further making it a promising area for investment.

Increase in Sales Value

The total value of real estate transactions reached 141.9 billion AED, a 14.4% increase from the last quarter and a 30.1% rise compared to Q3 2023. This surge in sales value is driven by strong demand across different property types, contributing to the market’s overall growth. Apartments had a total sales value of AED 70.5 billion, while villas brought in AED 39.2 billion. The commercial property sector generated AED 2.3 billion in sales, and plots of land contributed AED 29.9 billion. These figures highlight the strong demand for various types of properties in the market.

Higher Mortgage Registrations

Mortgage activity was also robust with 11,693 registrations, representing a 38.7% increase compared to Q3 2023. This indicates that more buyers are utilizing financing options to purchase properties boosting market growth.

Property Price Changes

Property prices have experienced various changes. First-sale apartments now average 1,820 AED per square foot, reflecting a 2.5% increase from last year. First-sale plots saw a significant jump to 1,277 AED per square foot, up by 155.4%. First-sale villas are now priced at 1,419 AED per square foot, a 17.6% increase. These trends indicate strong interest in newly built properties.

Quarterly Sales Review

In 2024, Q1 saw 36,500 sales, Q2 had 30,100 sales, and Q3 bounced back with 36,600 sales. This demonstrates the market’s ability to remain strong and attract buyers throughout the year.

Off-plan Sales Transactions Q3 2024

In Q3 2024, Dubai's off-plan market reached new heights, with 31,800 transactions, a 19.4% increase from the 26,629 transactions in 2009. This strong performance indicates that off-plan properties now represent 63.1% of total transactions, the highest in ten years, with a year-on-year growth of 58.7%. The value of off-plan transactions hit a record AED 67.45 billion, exceeding the previous peak of AED 52.63 billion from Q2 2024 by 28.2%. Overall, off-plan transactions accounted for 47.5% of total transaction value, showing a 42.3% increase compared to Q3 2023.

Existing/Ready Sales Transactions Q3 2024

In Q3 2024, the existing or ready market saw about 18,639 transactions, which is a 13.3% increase from around 16,450 transactions. This made up 37% of all transactions during the quarter, with a 7.9% growth compared to Q2 2024. The total value of these transactions reached AED 74.526 billion accounting for 52.5% of the overall sales value, down from 56.6% in Q3 2023. This value marks a significant 20.8% increase compared
to AED 61.71 billion in Q3 2023.