August marked another record-breaking month for sales transaction volumes in Dubai real estate, continuing the trend set by every month in 2024, except April.
Median prices hit AED 3,124,444, with property price appreciation accelerating, recording a 2.48% month-on-month rise—double the growth pace from last month.
Emaar maintained its dominance in the Dubai property investment market, recording nearly 2,500 off-plan sales in August.
Off-plan project launches surged, with market absorption keeping pace as off-plan properties now make up over 70% of sales.
Mortgage transactions saw a dip as rate cuts loom.
Dubai real estate price growth has continued strong, experiencing the second-highest monthly gain of this cycle at 2.48%. New off-plan property sales are a driving force, particularly in communities that previously saw balanced launches. This trend is pushing Dubai off-plan property prices upward as older units experience more moderate growth.
According to the Property Monitor Dynamic Price Index (DPI), Dubai real estate prices now stand at AED 1,431 per square foot, up 16% from the previous market peak in September 2014, reflecting a 56.8% increase since prices bottomed out in late 2020. August also recorded 16,145 sales transactions, making it the highest August ever and the second-highest month overall. Residential sales, including apartments, townhouses, and villas, made up 93.9% of the total, with commercial transactions led by office spaces, vacant land, and hotel apartments.
Off-plan transactions rose by 11.4% to 10,462 sales, accounting for 64.8% of the market share. However, after adjusting for technicalities in title deed classifications, off-plan transactions took an even larger 72.2% share. Meanwhile, resales dropped by 8.4% to 5,272 transactions.
New project launches reached record highs, with nearly 7,400 off-plan units entering the market in August, adding AED 16.5 billion in value. Apartments made up 82.2% of the inventory, with townhouses and villas contributing 14.1% and 3.7% respectively. Year-to-date, nearly 86,000 units have been launched, with a total sales value of AED 213.7 billion, well on track to surpass last year’s AED 272 billion.
In August, mortgage transactions dropped by 10.1% to 3,589, reflecting a temporary pause as buyers await anticipated rate cuts. Once interest rates begin to fall, mortgage activity in Dubai real estate is expected to rise again, especially for refinancing. Loans for new purchases accounted for 51.3% of all mortgages, with an average borrowing amount of AED 1.7 million and a 76.1% loan-to-value ratio.
Looking ahead, Dubai off-plan property sales are expected to maintain strong momentum, driven by new launches and competitive pricing. The gap between off-plan and ready property sales is likely to grow, but once mortgage rates ease, we anticipate increased activity in ready properties—provided sellers price realistically.
The Property Monitor Dynamic Price Index (DPI) serves as a critical tool for tracking residential property price trends across various communities in Dubai. It is indexed to a base period starting in January 2008, offering a comprehensive view of Dubai real estate price movements. As of August 2024, the index registered a significant increase, rising by 4.84 points to reach 199.86 from 195.03 in July, marking a month-on-month increase of 2.48%.
In August 2024, Dubai property prices surged to new record highs, now standing at AED 1,431 per square foot. This figure represents an 82.4% rise from the market’s lowest point in April 2009 and a 16.03% increase compared to the previous peak in September 2014. Barring any significant economic, geopolitical, or unforeseen global events, the current momentum in the Dubai real estate market is expected to support continued growth throughout the remainder of 2024.
On a year-over-year basis, Dubai real estate prices have experienced a remarkable increase of 17.7% in August, marking 42 consecutive months of annual price growth. Year-to-date, prices have risen by 11.5% in 2024, compared to 10.9% during the same period in 2023, underscoring the strong demand for Dubai property investment and off-plan property opportunities.
Source: https://propertymonitor.com/insights/monthly-market-report/monthly-market-report-august-2024
HISTORICAL TRANSACTIONS – COMPLETION STATUS
Sales transaction volumes in August 2024 reached 16,145, reflecting a modest 0.2% increase compared to July. Of these transactions, the off-plan property sector dominated the market, accounting for 64.8% of all deals, an increase of 6.5% month-on-month. After adjusting for registration technicalities, including villa and townhouse transactions listed under Title Deed, the true share of off-plan property transactions in the Dubai real estate market is even more pronounced at 72.2%.
Emaar Properties maintained its leadership in the Dubai off-plan property market, capturing an impressive 24.1% market share. Emaar recorded 2,459 transactions across its various projects, with notable successes in Marina Views at Mina Rashid Yachts and Marina, where 435 sales were completed. Additional high-performing projects include Venera and Velora in The Valley, along with Golf Lane and Greenway 2 in Emaar South, contributing 426, 370, 342, and 250 sales respectively.
Sobha Group followed with 10.9% of the Dubai off-plan property market, with its Riverside Crescent buildings in Sobha Hartland II accounting for over 71% of its 1,107 sales. Other key projects include Sobha One, which saw 254 sales, and Sobha Orbis in Motor City, with 41 sales. Azizi Developments secured the third position with notable transactions in Azizi Seagate Residences in Dubai Studio City, which led the way with 157 sales, followed by Azizi Grand in Dubai Sports City with 99 sales and Azizi Riviera 63 with 51 sales.
As Dubai real estate continues to thrive, the rise in Dubai property investment and the booming Dubai off-plan property sector offer ample opportunities for both investors and end-users seeking to capitalize on the city’s dynamic growth.
Source: https://propertymonitor.com/insights/monthly-market-report/monthly-market-report-august-2024
HISTORICAL TRANSACTIONS – SALES RECURRENCE
In August 2024, the market share of initial developer sales saw a significant increase of 8.4%, rising to 67.3%, compared to resale transactions. The 12-month rolling average now stands at 61.9% for initial sales and 38.1% for resales, with the latter gradually declining from its peak of 51.8% in April 2023. This trend is shifting back towards the levels seen in 2019 and 2020, where resales accounted for 33.2% and 33.8%, respectively.
Jumeirah Village Circle (JVC) emerged as the leading master development for initial sales, accounting for 9.4% of all such transactions. Oxford registered the highest number of sales in the community with 134 registrations, followed by One Park Central (109), Fifth Tower (95), and Hillmont. Sobha Hartland II ranked third overall, capturing 7.4% of the market share with 788 total sales. Notably, 350 Riverside Crescent led the way with 205 registrations, closely followed by 340 Riverside Crescent (196), 320 Riverside Crescent (170), and 360 Riverside Crescent (125).
For residential resale transactions, Jumeirah Village Circle also led the way, accounting for 7.6% of total resale transactions. Binghatti Corner and Uniestate Prime Tower were the most active projects, with eight transactions each. Business Bay followed, holding a 6.3% market share, with Sol Bay leading the area with 20 sales. Dubai Marina rounded out the top three master developments for resales, with Escan Tower recording 13 transactions, contributing to the area’s 4.9% market share.
The Valley secured second place in overall initial sales, with 874 transactions and an 8.2% market share. The most notable projects were Venera and Velora, with 426 and 370 registrations, respectively.
Shifting Market Dynamics: Mid-Range and High-End Properties Surge in August
The AED 3M-5M price segment saw the fastest growth in August, expanding by 3.8% to capture 16.8% of the market. This rise was driven by the successful launch of premium townhouses at Venera and Velora in The Valley, along with luxury apartments at Marina Views in Mina Rashid, where sales prices averaged AED 1,231 and AED 2,941 per square foot, respectively.
Conversely, the AED 1.5M-2M price tier experienced the largest decline, dropping by 2.2% to account for 12.3% of the market. The adjacent AED 2M-3M segment, however, showed solid growth, increasing by 1.6%. This was supported by strong sales in branded off-plan developments like 25H Heimat and Rixos Financial Center Road Dubai Residences, where prices averaged AED 2,774 and AED 2,981 per square foot.
When consolidated into three main price categories, properties in the AED 1M-3M mid-tier continued to dominate the market, accounting for 44.7% of total transactions, though down 0.8% from the previous month. Properties under AED 1M represented 27.7% of the market, down by 1.9%, while high-end properties over AED 3M surged by 2.7%, making up 24.6% of the market in August.
Methodology and Metrics
Dynamic Price Index (DPI)
The Property Monitor Dynamic Price Index (DPI) is calculated using a moving average algorithm based on median prices, applying the Dutot price index formula. Extreme values and outliers are cleansed from the data set. The index is updated at the end of each calendar month and may be revised retroactively if additional data points or datasets become available. This approach ensures the most comprehensive data set is used, incorporating information that may not have been available during the original index compilation. Detailed methodology and notes on the index can be found at propertymonitor.com.
Source: https://propertymonitor.com/insights/monthly-market-report/monthly-market-report-august-2024
Completed Transaction
This refers to sales recorded in the Dubai Land Department’s official Title Deed register for properties that have been issued a Building Completion Certificate (BCC) and are available for purchase and occupancy. Completed transactions generally include the resale of properties between private parties. They may also cover first-time transfers between developers and buyers after a BCC has been issued, in cases where the developer had unsold units after project completion.
Gross Rental Yield
Gross rental yield represents the annual rental income as a percentage of the property’s purchase price or current value. In this report, it is presented as the blended average rental yield across properties in Dubai, covering all communities.
Highest Recorded Sale
This refers to the single transaction of either an apartment or villa that achieved the highest recorded sales price for the month. The sale could be an off-plan or completed transaction, often involving a direct purchase from a developer or project sponsor by a buyer during the construction phase.
Initial Sale
An initial sale is the first transfer of a property, typically from a developer to a buyer. This type of transaction often occurs during the construction phase of a project and is registered as an off-plan sale with the Dubai Land Department. If the developer still holds unsold units after the project is completed, the initial sale will be recorded with a Title Deed. After this, any further transactions are considered resales.
Lowest Recorded Sale
This refers to the transaction of an apartment or villa that achieved the lowest sales price during the month, in either the off-plan or completed transaction categories.
Median Price Per Sq Ft
This is the midpoint of all recorded prices per square foot for residential apartments, townhouses, and villas sold during the month. The data is drawn from transaction records that include square footage information.
Median Sales Price
The median sales price is the midpoint value of all sales recorded for apartments, townhouses, and villas during the month. Median values are generally considered more accurate than averages, as they are less likely to be influenced by extreme price outliers.
Off-Plan Property Transaction
Off-plan transactions are those recorded on the Dubai Land Department’s interim register (Oqood), covering all sales agreements for properties in developments where construction has either not started or is still ongoing. These transactions typically refer to the first-time sale of properties between developers and buyers but may also include subsequent transfers between the original buyer and a new buyer, up until the property receives a Building Completion Certificate (BCC) and is eligible for Title Deed transfer.
Price Tiers
All off-plan and completed transactions for residential apartments, townhouses, and villas are categorized into one of nine price tiers, based on the recorded transfer price. Properties priced at the exact upper limit of a tier, such as AED 500,000, are placed into the higher price tier (e.g., AED 500,000–750,000).
Source: https://propertymonitor.com/insights/monthly-market-report/monthly-market-report-august-2024
Resale
A resale is any subsequent sale of a property following its initial sale by the developer. Resales can occur at any stage, regardless of whether the property is still under construction or has been completed. A resale may take place during the construction phase when a buyer who purchased the property from the developer sells it to a new buyer before project completion.