Market Insights: July 2024

Property prices rose 1.22% month-on-month, despite July traditionally being a low season in real estate

Sales volumes reach 16,113 transactions, marking the second-highest level since May 2024

New developments in Dubai Hills, Dubai Creek Harbour, Business Bay, and DAMAC Hills 2 drive up property price tiers in the AED 1.5M-2M and AED 2M-3M ranges

Off-plan sales continued its dominance in July, achieving 9,393 transactions, with EMAAR recording over 2,000

Mortgage transactions surge by 20.2%, reaching 4,033 loans, the second highest ever

700 new units added, contributing to approximately 68,000 units across more than 220 projects this year

Despite Dubai's sweltering summers typically cooling property activity, July defied seasonal trends. Property prices rose 1.22% to AED 1,397 per sq.ft., marking the 41st month of year-on-year increases. Sales volume also saw a record-breaking 16,113 transactions in July, marking the second-highest monthly total ever.

Dubai's off-plan market, the property scene's largest player, saw a significant boost with 9,393 transactions in July, a 17.1% rise from June, making up 58.3% of the market. Resales also increased slightly, comprising 41.0% of total sales, with off-plan resales at 26%. These off-plan sales indicate speculative activity, with buyers looking to make quick profits by selling properties before completion. However, the risks are reduced as many of these properties are nearing completion.

Mortgage activity mirrored Dubai's property trends with a 20.3% increase, totaling 4,033 loans recorded in July. Meanwhile, refinancing and equity release loans captured 33.8% market share, while bulk mortgages taken by developers and large investors comprised 13.2%. These bulk loans are evident in projects like Paradise Views 1 in Majan, Al Ayyan Tower in International City II, Platinum Tower in JLT, and Binghatti Views in Dubai Silicon Oasis.

Additionally, nearly 9,000 new off-plan units were added to Dubai's property landscape, building on June's 8,300 units valued at AED 16.6 billion. This brings the 2024 estimate to around 68,000 units across more than 220 projects, showcasing the market's extraordinary momentum.

In July 2024, it was the AED 1.5M-2M price tier that saw the largest number of buyers, increasing by 3.5% to capture a 14.5% market share. This was due to the influx of new developments like Palace Residences in Dubai Hills and Arlo in Dubai Creek Harbour, where sales prices averaged AED 2,421 and AED 2,601 per sq.ft., respectively.

The AED 2M-3M price tier also gained ground in June, increasing by 2.0% and capturing 17.1% of all sales. This increase was due to sales of luxury apartments at Bayz 101 in Business Bay and high-category townhouses at Park Greens in DAMAC Hills 2.

After setting a record high market share in June, the AED 5M-10M tier surprisingly saw the biggest drop of 2.4%, now holding 5.5% of the market. This decline could be attributed to a temporary cooling in demand within this high-end segment or buyers not finding suitable properties within this price range.

After condensing all nine property tiers into three main groups, the mid-tier AED 1M3M segment dominates the market with a 48.5% share, an uptick of 4.2%. The low-price tiers (under AED 1M) now represent 29.6% of the market, down by 1.0%, while high-end properties over AED 3M hold a 21.9% market share, experiencing a drop of 3.2%.