Market Insights: August 2024

Sales rose 0.2%, with 16,145 transactions, marking the highest August on record.

With 86,000 units launched, sales are set to exceed last year’s AED 272 billion.

Off-plan sales made up 64.8% of transactions, rising to 72.2% after registration adjustments.

August saw Dubai’s real estate market roar ahead with a 2.48% price surge, marking the second-highest monthly gain in this cycle. At AED 1,431 per sq.ft., prices are now 16% higher than Dubai's 2014 market peak. This growth is due to the surge in off-plan project sales in communities that previously had a balanced mix of new and ready properties. With nearly 86,000 units launched this year, this trend is expected to continue.

Dubai’s property prices have surged by 56.8% over the past 46 months of continuous growth. Year-to-date sales have also reached AED 213.7 billion, putting the market on track to surpass last year’s total of AED 272 billion. This surge in sales can be attributed to factors such as Dubai’s ease of doing business, attractive payment plans offered by developers, and strong expectations for capital appreciation and rental returns.

August saw a slight 0.28% bump in sales, hitting 16,145 transactions - the highest ever for the month and the second-highest overall. Residential properties like apartments, townhouses, and villas dominated with 93.9% of the total, while office spaces (1.7%), vacant land (1.6%), and hotel apartments (1.4%) led commercial sales. With nearly every month in 2024 breaking records, it's clear that investor confidence is still going strong, fueled by off-plan projects and great market conditions.

August saw the AED 3M-5M price tier lead the market, rising by 3.8% to capture 16.8% of total sales. This growth was driven by the buzz surrounding new launches, such as the Venera and Velora townhouses in The Valley, and luxury apartments at Marina Views in Mina Rashid, where sales prices averaged AED 1,231 and AED 2,941 per sq.ft., respectively. Conversely, the AED 1.5M-2M segment declined the most by 2.2% to capture a 12.3% market share.

Meanwhile, the AED 2M-3M tier rose by 1.6%, driven by popular projects like 25H Heimat and Rixos Financial Center Road in Downtown Dubai. These off-plan branded apartments, priced at AED 2,774 and AED 2,981 per sq.ft., respectively, have maintained high demand for luxury properties.

Breaking down the market further, the mid-tier (AED 1M-3M) still holds the largest market share at 47.7%, dipping slightly by 0.8%. Lower-priced properties (under AED 1M) now account for 27.7%, down by 1.9%. In contrast, the high-end segment (over AED 3M) rose to 24.6%, encouraging property developers to continue focusing on luxury projects in the coming months.

When grouping the nine property tiers into three main categories, the mid-tier AED 1M-3M segment continues to dominate, holding 47.7% of the market share. The lower-priced tiers (under AED 1M) saw a 1.9% decline and now represent 27.7% of the market, while high-end properties (over AED 3M) increased by 2.7%, making up 24.6%.

In summary, despite a slight decrease in market share, the mid-tier segment maintains its strong position, while demand for high-end properties continues to grow. Meanwhile, the lower-priced tiers have underperformed, reflecting a broader market shift towards mid and high end developments in Dubai's real estate sector.

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