Market Insights: June 2024

Dubai property prices rose by 7.5% year-to-date, with June seeing a slight increase of 1.5%

Sales transaction volumes drop by 19.3% to 14,285 transactions, yet remain the second-highest recorded level

Over 8,300 new off-plan units have been added to Dubai’s property landscape, valued at AED 16.6 billion

Mortgage transaction volumes decline by 0.15%, but purchase mortgages still account for 48.2% of all transactions

Villa sales in the AED 5-10 million range reach a record market share of 7.9%, with over 1,050 sales recorded

With the midpoint of 2024 reached, Dubai's property prices are once again on the rise. Year-to-date figures show a steady increase of 7.5%, with June's numbers seeing a 1.5% uptick. This consistent growth reassures buyers and investors of the market's stability.

Sales transaction volumes, in contrast, dropped sharply by 19.3%, with off-plan transactions bearing the brunt of this decrease (a 27.8% decrease). Despite this decline, it is still the second-highest level ever recorded, signaling that market demand hasn't waned. Resale transactions, meanwhile, have increased by 5.2%, indicating a shift towards more mature properties.

Although mortgage transaction volumes declined by 0.15%, purchase mortgages hold a significant market share of 48.2%. Couple this with the increase in bulk mortgages to 23.3%, and property financing still remains a popular option among buyers and developers.

The off-plan sector also saw over 8,300 new units launched, valued at AED 16.6 billion. Most of these new units (85.9%) were apartments, with townhouses (13.5%) and villas (0.6%) making up the rest. This marks a total of 67,800 units so far in 2024, and if trends continue, will likely surpass last year's record of 96,000 units.

In June, Dubai's luxury segment (AED 5-10M) drew attention with a 2.7% month-on-month increase, achieving a record market share of 7.9%. This rise is largely attributed to the introduction of high to mid-range villas at The Acres and The Haven, with sales prices averaging AED 1,717 and AED 1,341 per sq.ft., respectively.

Similarly, the AED 10M+ segment rose significantly by 2.4%, driven by high-end villas at Mirage in The Oasis and luxury villas in Phase 4 of Nad Al Sheba Gardens, where prices per sq.ft. averaged AED 1,772 and AED 2,386, respectively.

In contrast, the AED 2M-3M segment decreased by 3.9%, accounting for 15.1% of total transactions. The AED 1.5M-2M segment also experienced a 2.3% decline, holding an 11% market share.

This month was an eye-opener for investors and researchers alike, as data revealed a clear shift in market dynamics. The luxury segment, particularly properties priced over AED 3M, has made a notable leap, increasing its market share to 25.1%, a substantial 5.9% rise from May. This is a significant departure from previous months, where more affordable properties were the focal point.

While the AED 1M-3M property tier still maintains its foothold as the largest segment, with a 44.3% market share, it has experienced a 7.2% decline since last month. Meanwhile, properties priced under AED 1M, which hold the second-largest market share of 30.6%, saw a decrease of 1.3%.