Dubai's property market is poised for a strong influx of new projects, with almost 200 developments currently in the planning stages across various developers. According to Cavendish Maxwell's Property Monitor report, the first eight months of this year have seen an impressive 86,000 new units launched, collectively valued at AED 213.7 billion. This figure is well on its way to surpassing last year's total of AED 272 billion.
The Property Monitor team is closely following approximately 200 additional projects in the pipeline, with expectations that the high volume of new launches will persist through the remainder of 2024. The report also forecasts the addition of another 35,000 to 40,000 units to the off-plan segment.
New developments are anticipated to expand significantly across multiple price segments and communities, particularly apartments in areas like Dubai Islands, Jumeirah Garden City, Dubai Maritime City, Motor City, and Dubai Land Residence Complex. The city will also see more single-family units—including townhouses and villas—in locations such as The Valley, The Acres, The Oasis, and The Height Country Club.
In recent years, Dubai has become increasingly attractive to foreign developers seeking to capitalise on the growing demand for off-plan properties. This surge is driven by rising population figures, with the emirate's population reaching 3.781 million, resulting in significant price and rental hikes.
August witnessed a notable increase in total sales transaction volume, which grew by 0.28 % to reach 16,145 transactions. This marked the highest August sales volume on record and the second-highest overall month in the city's history. In fact, with the exception of April, every month in 2024 has reached record-breaking transaction volumes compared to previous years.
Property prices in Dubai also continued their upward trajectory, averaging AED 1,431 per sq.ft., which is 82.4% higher than the market low of April 2009 and 16.03 % above the peak reached in September 2014. According to the report, barring significant economic or geopolitical disruptions, this momentum is likely to sustain growth for the remainder of the year. Prices in August saw a year-on-year increase of 17.7 %, contributing to 42 consecutive months of such growth. Year-to-date figures for August 2024 also showed an 11.5% increase, compared to a 10.9% rise in the same month last year.
Zhann Jochinke, Director of Market Intelligence and Research at Cavendish Maxwell, highlighted the resilience of the market, pointing out the strong growth in off-plan sales and consistent transaction volumes, despite fluctuations in mortgage activity. In August, the number of transactions stood at 16,145, increasing slightly from July. Transactions involving Oqood registrations accounted for 64.8% of the total, reflecting a 6.5% monthly increase, indicating a strong preference for off-plan deals over ready properties.
Original article reference: Mena FN.
