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VILLAS LEAD DUBAI REAL ESTATE SURGE AS THE MARKET CONTINUES TO EXPAND

Date: 13-Nov-2024 | Category: News & Updates

As we close out October, it's evident that Dubai's real estate market is entering an exciting new phase of growth with record-breaking performance across multiple sectors. The standout achievement this month is the remarkable 102% surge in villa sales indicating strong demand. Overall, property transactions reached an impressive 20,461 marking a 68.5% increase compared to the same time last year—a promising sign of the market's continued strength and resilience.

Surging Sales and Rising Prices

The volume of transactions in October was truly impressive with over 20,000 deals closed signaling a growing confidence in Dubai's property market. More people are actively buying and selling driving the market forward . According to Dubai Interact, the price per square foot rose to AED 1,585, up 7.1% from last October showcasing the continued growth in property values. The total market value for the month reached an impressive AED 61.1 billion, showing a 54.5% increase compared to last year. This highlights the ongoing strength and resilience of Dubai's real estate.

Dubai property price change in October over the years

Property Type Breakdown:

Apartments lead the charge with 15,662 sales in October marking a 67.2% year-on-year increase. The total sales value for apartments hit AED 28.1 billion fuelled by a growing demand for urban living.

• Villas have seen an exceptional 102% rise in sales, with 3,830 villas sold contributing AED 20.5 billion to the market's total value. This surge is driven by the appeal of larger more private and luxurious homes.

Commercial properties recorded 424 transactions, valued at AED 916.2 million.

• Buildings experienced a massive 300% surge with 10 transactions totalling AED 501.1 million representing strong investor interest.

• Land plots saw 533 transactions worth AED 11.1 billion showing a solid 21.1% growth compared to last year.

Price Trends Across Property Sectors

Dubai's property prices have experienced consistent growth across various segments. Apartments now average AED 1.3 million a 5% increase from October 2023 driven by the high demand for urban living. Villas saw a more modest rise of 1.1% with average prices reaching AED 3.1 million. This increase reflects the growing appeal of larger more luxurious homes in suburban locations. Commercial properties, which continue to attract investor interest saw a 13.5% increase in prices with the average price reaching AED 1.4 million. Land plots experienced a slights price increase of 1.2% with average prices standing at AED 5.1 million signaling continued demand for development opportunities.

Rental Market on the Rise

Dubai's rental market is also showing impressive growth. Apartments saw a 14.3% increase in rental prices now averaging AED 80,000 annually driven by the continued demand for urban living. Villas with their larger space and prime locations saw rental rates rise by 10.5% averaging AED 180,000 annually. Commercial spaces also experienced a sharp 21% increase in rental prices with average rents now at AED 60,000 per year.




Mortgage Market Sees Growth

The mortgage market has shown solid growth as well with 4,323 mortgage transactions completed in October up by 59.9% from last year. The total value of these mortgages was AED 16.2 billion, a 41.9% increase highlighting the increasing number of buyers opting for financing options.