The Dubai real estate market saw unprecedented activity in September 2024, recording 18,038 property transactions. This marks a significant surge, surpassing the previous record of 17,139 transactions set in May 2024. The impressive figures reflect growing investor confidence and sustained demand for properties in Dubai, highlighting the city’s thriving real estate sector.
Record-Breaking Transactions and Ongoing Growth
Residential properties accounted for over 95% of the September transactions, with a total of 17,151 deals. Among the major developers, Emaar led the market, with a dominant 73% of the transactions focused on off-plan properties. Other key players included DAMAC Properties and Sobha Realty.
Year-to-date sales in 2024 are nearly on par with the total sales of 2023. According to Property Monitor, from January to September 2024, there were more than 131,000 transactions—just 2% shy of the entire 2023 total. Projections suggest that the market could see a 30% year-over-year increase, potentially reaching 170,000 sales by the end of this year.
Market Drivers and Comparison to Pre-2020 Activity
At the start of the year, Property Monitor had predicted that the Dubai real estate market would grow four times larger than it was in 2020. This growth trajectory has been driven by government initiatives aimed at supporting the sector, moving beyond price recovery and into robust expansion.
Henry Bache, CEO of Property Monitor, cited September’s record-breaking transaction volume and strong market conditions, forecasting a 30% increase by year-end. This growth is expected to be fueled by new real estate projects, along with declining mortgage rates.
Rising Property Prices and Market Trends
In September, property prices continued to climb, with the average price reaching AED 1,448 per square foot—an increase of 1.14% from August.
The average price for townhouses in Dubai reached AED 2.76 million, villas were priced at AED 7 million, and apartments averaged AED 1.3 million. Mortgage activity also surged, with a 16.6% increase in transactions, attracting both investors and homebuyers.
New Supply to Meet Growing Demand
According to Auriss Properties, over 90,000 new units are expected to be added to the Dubai real estate market over the next two years. A total of 1,034 construction projects are currently underway, with an estimated 288,020 new units set to be completed in the coming years. As of now, 99,779 units have been delivered in 2024, and it’s anticipated that the market will see more than 100,165 deliveries by the end of the year.
Developer Challenges Amid High Demand
“An impressive 41,000 new units are expected to enter the market in 2025, a record for a single year, with an additional 48,400 units projected for 2026.”
He also noted that projects launched in 2025 will drive deliveries in 2027 and beyond, ensuring continued market activity.
That rapid growth in the sector is putting pressure on real estate developers and contractors to streamline procurement processes. He pointed out the logistical challenges of meeting delivery deadlines, rising transportation costs, and geopolitical risks that could disrupt key trade routes.
Conclusion
Dubai’s real estate market is thriving, with record-breaking transaction volumes in September and rising property values. This growth can be attributed to a combination of low mortgage rates, high demand, and favorable government policies. Despite the logistical challenges, the sector’s strong fundamentals position Dubai to remain one of the world’s most attractive real estate markets for years to come.
