Market Insights: May 2024

Mortgage activity rebounded with a 58% MoM increase, achieving the second-highest level in history

Jumeirah Village Circle and Ras Al Khor were the top-performing areas for both initial sales and resales

Dubai's property market displayed measured growth in May, with average prices rising by 0.69% from April. Prices have reached a new record high of AED 1,360 per sq.ft, now 10.25% above the previous peak of September 2014 and marking the 39th consecutive month of price increases.

May's highlight was Dubai’s record-breaking sales volume, with 17,139 transactions reported. This marks a significant 47.7% increase from April and 45.9% year-on-year growth, showing real estate experts and economists that Dubai's property market continues to grow at an unprecedented pace.

A key driver behind this upward trajectory is the rising popularity of off-plan properties, which accounted for 66.7% of total sales in May. This trend was further fueled by a record surge in new off-plan project launches, adding over 15,500 units to the market with an anticipated combined gross sales value of approximately AED 41.4 billion. With buyer appetites for off-plan properties showing no sign of slowing, Dubai’s real estate market remains as strong as ever.

May has been a standout month for Dubai's AED 2M-3M price tier, surging by 1.8% to capture a 19.0% market share. This was due to the recent launch of new mid-market townhouses at Lillia in The Valley and upper-mid apartments at Sobha One in Ras Al Khor.

The AED 1.5M-2M segment grew by 1.4%, spurred by demand for premium off-plan apartments at Parklane Hills in Dubai Hills, averaging AED 2,292 per sq.ft. The AED 5M-10M and 10M+ segments showed mixed performance, with increases of 0.7% and decreases of 0.3%, respectively.

Dubai's real estate market continues to demonstrate that properties offering a blend of affordability and quality, sell fast. The AED 1M-3M range emerged as the top performer in April and May, growing by 3% and capturing a 51.5% market share. With over half of the total transactional activity in this range, it is clear that this is the current ‘sweet spot' for buyers in Dubai.

In contrast, properties priced below AED 1M and above AED 3M experienced slight declines, with market shares falling by 1.3% and 1.7%, respectively. While these drops aren't significant, they may indicate a shift in buyer preferences towards mid-range properties.

Despite these fluctuations among different price tiers, the overall trend in Dubai's real estate market is one of rising sales volume and prices. Couple that with record-high mortgage activity, and it's clear that now is a prime time to invest in Dubai's real estate market.

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