UAE real estate news: Market Overview Q3 2024

Key Takeaways 🗝️

  • Unmatched Growth: Q3 2024 breaks records with AED 142B in sales value.
  • Skyrocketing Demand: Over 50,000 transactions completed, proving investor confidence.
  • Market Momentum: 146 new projects registered, making it the most active quarter in history.
  • Rental Surge: Nearly 46,000 new rental contracts, driving continued upward momentum in the market.
  • Dubai Leads the Way: The city reinforces its position as a global real estate powerhouse. 

 

Market Overview

Q3 2024 was a record-breaking quarter for the Dubai real estate market, solidifying investor trust and setting new benchmarks in terms of both volume and value. The quarter saw an impressive surge in transactions, project registrations, and completed units, making it the most active quarter in Dubai’s history. The demand for both off-plan and ready properties continues to rise as Dubai reinforces its position as a global real estate hub.

 

Sales Volume & Value

Q3 2024 smashed all previous records with an astounding 50,425 transactions, marking a 38% year-over-year (YoY) increase. The total sales value reached AED 141.95B, representing a 30% YoY growth. These figures highlight the increasing confidence of investors in Dubai’s real estate market, showcasing that record-breaking performance has become the norm in this dynamic sector.

Top-Selling Areas by Category

1st Sale Apartments:

  • Jumeirah Village Circle (JVC): 3,140 units sold, worth AED 3.1B.
  • Sobha Hartland 2: 2,066 units sold, worth AED 4.2B.
  • Dubai Hills Estate: 1,900 units sold, worth AED 4.8B.
  • Dubai Creek Harbour: 1,405 units sold, worth AED 4B.
  • Business Bay:1,389 units sold, worth AED 3.5B.

 

1st Sale Villas:

  • Al Yufrah 1: 1,250 units sold, worth AED 4.4B.
  • Dubai South: 1,025 units sold, worth AED 4.2B.
  • Madinat Hind 4: 802 units sold, worth AED 1.5B.
  • Dubai Investment Park Second: 652 units sold, worth AED 1.8B.
  • Wadi Al Safa 5: 394 units sold, worth AED 1.5B.

Resale Apartments:

  • Dubai Marina: 1,146 units sold, worth AED 3.1B.
  • Jumeirah Village Circle (JVC): 1,104 units sold, worth AED 977.2M.
  • Business Bay: 934 units sold, worth AED 1.5B.
  • Al Merkadh: 699 units sold, worth AED 918.3M.
  • Downtown Dubai: 688 units sold, worth AED 2.5B.

Resale Villas:

  • Wadi Al Safa 5: 385 units sold, worth AED 1.2B.
  • Al Hebiah Fifth: 261 units sold, worth AED 799.8M.
  • Emirates Living: 171 units sold, worth AED 1.1B.
  • Al Yufrah 1: 158 units sold, worth AED 405.6M.
  • Dubai South: 141 units sold, worth AED 384M.

Price Trends

Across various categories, prices per square foot (sqft) showcased notable trends:

1st Sale:

  • Apartments: AED 1,758 per sqft, with a slight YoY decline of 1.00%, though prices remain 44.70% higher than in 2014.
  • Plots: AED 1,147 per sqft, showing a staggering 74.50% YoY growth and a 378.10% increase since 2014.
  • Villas: AED 1,427 per sqft, marking an 18.40% YoY rise, with a 122.40% increase since 2014.

Resale:

  • Apartments: AED 1,301 per sqft, up 5.60% YoY.
  • Commercial: AED 1,242 per sqft, up 20.10% YoY.
  • Plots: AED 992 per sqft, with a 55.10% YoY increase.
  • Villas: AED 1,295 per sqft, up 15.40% YoY.

New Supply & Project Launches

The third quarter of 2024 also witnessed remarkable activity in terms of new projects and deliveries:

  • 146 projects were registered during the quarter, making it the most active quarter ever in the history of the Dubai real estate market, achieving an all-time high.
  • 21 projects were completed, adding 5,183 units to the market.

Top areas where these deliveries took place include:

  • Al Barsha South Fourth: 1,744 units (33.65% of total).
  • Hadaeq Sheikh Mohammed Bin Rashid: 904 units (17.44% of total).
  • Al Merkadh: 378 units (7.29% of total).
  • Al Barsha South Fifth: 374 units (7.22% of total).
  • Madinat Al Mataar: 292 units (5.63% of total).

Rental Market Overview

The rental market continued its upward trajectory in Q3 2024, with both apartments and villas experiencing substantial increases in median rent:

Apartments:

  • Median Rent: AED 68,000.
  • YoY Increase: +19.30% (from AED 57,000).
  • QoQ Increase: +6.19% (from AED 64,039).

Villas:

  • Median Rent: AED 180,000.
  • YoY Increase: +5.88% (from AED 170,000).
  • QoQ Increase: +5.88% (from AED 170,000).

Off-Plan vs Ready Property Sales

The off-plan market saw significant growth, with a notable balance between first sales and ready properties:

1st Sale Properties:

  • Volume: 34,289 transactions, reflecting a 53% YoY growth.
  • Sales Value: AED 89.93B, with a 49.6% YoY value growth.
  • Price per Sqft: AED 1,605, a 3.68% YoY increase.

Resale Properties:

  • Volume: 16,134 transactions, with a 13.9% YoY growth.
  • Sales Value: AED 51.99B, reflecting a 6.2% YoY increase.
  • Price per Sqft: AED 1,281, marking an 11.18% YoY increase.

Future Outlook

Looking ahead, the Dubai real estate market is poised for further growth as investor confidence remains high and new projects continue to be delivered. With the strong performance in Q3 2024, characterized by record-breaking transactions and value, Dubai’s property market is expected to continue attracting both local and international investors. The continuous influx of new projects and the rising rental market make Dubai a prime destination for real estate investment.

Stay ahead in 2024 with our quarterly insights to make informed decisions.