Robust Growth in Sales Volume and Value
August was another strong month for Dubai’s real estate market, with property sales reaching AED 47.3 billion, up 40.8% compared to August 2023. This is according to a report just released by fäm Properties, which said the volume of transactions rose 36.9% to 16,159, while the average price per square foot rose 6.1% to AED 1,493.
PC: Dubai Chronicle
Land and Luxury Properties Take Center Stage
It was land sales that recorded the largest growth of 153.8 percent on a month-on-month basis, with 1,396 plots being sold for AED 15.1 billion. Of the single property transactions, the costliest sale last August was that of a luxury apartment in the Dorchester Collection, Business Bay, which sold for AED 139 million.
The villa market was equally busy, as 2,126 villas were sold for AED 8 billion, up 4.6 percent from August 2023. For commercial properties, change of hands for 369 units changed hands amounting to AED 674 million, which is 19.8 percent more in volume compared to the same period a year ago.
History Comparison: Steady Growth over Five Years
Sales in August continued to reflect the steady growth that the Dubai real estate market has witnessed during the last five years. The market, which saw AED 4.7 billion in sales across 2,400 transactions in 2020, has grown to over AED 47 billion and more than 16,000 transactions in August 2024. The growth marks Dubai’s rising prominence as a global real estate investment hub.
Key Performers: Jumeirah Village Circle and Off-Plan Projects
The strongest performance came out to be from Jumeirah Village Circle, with 1,378 deals amounting to AED 1.4 billion. First in the list of best off-plan selling projects during August was Marina Views, with 425 apartments worth AED 1.4 billion. While in the villa category, The Valley, Venera accounted for 416 units sold for AED 1.3 billion.
Off-plan sales dominated the market, with 71% of the overall volume and 72% of the total value. The fact that more investors are into off-plan properties would suggest that investors maintain confidence in Dubai’s long-term real estate prospects.
Diverse Property Segments Drive Market Momentum
Further, Dubai property sales had a varied price bracket in August: 8% of all sales were above AED 5 million, while 29% were within the AED 1-2 million price bracket. Sales for properties below AED 1 million were at 28%, followed by 18% in the AED 2-3 million and 16% in the AED 3-5 million brackets, respectively.
Outlook: Continued Confidence in Dubai’s Real Estate Market
This, according to Firas Al Msaddi, CEO of fäm Properties, shows the latest figures highlight the robust strength of Dubai’s real estate sector. He added: “The continued upward trajectory the market has showed only strengthens investor confidence as local and international buyers alike buy into this market. The positive momentum has put Dubai in pole position for real estate investment.
Coming off the back of July’s 15,994 transactions, worth AED 49.6 billion, the strong performance in August makes it the second-best month for sales value this year, with more underlining of resilience and growth potential in the market.
In August 2024, different segments continued to show strength in Dubai’s real estate market. The surge in volume and value, further driven by mega land deals and high-end transactions, signals that the market is getting even more appealing to investors. As Dubai carves its niche among the most sought-after global real estate destinations, such consistent growth may spur more investment locally and abroad.
