Market Insights: October 2024

October was a landmark month for Dubai’s property market, delivering record-breaking numbers and performance. Property prices increased by 1.73% to an average of AED 1,473 per sq.ft., now nearly 20% above Dubai's real estate peak in 2014. This rebound and consistent growth indicate a maturing market, balancing strong demand with sustainable pricing trends.

Dubai’s off-plan in October accounted for 72.6% of transactions, driven by growing investor confidence in new developments. This demand pushed transaction volumes to 20,460 deals, a 13.4% increase from September. Apartments, townhouses, and villas dominated, comprising 94.9% of all transactions.

Development activity continues to thrive, with 48 new projects launched in October, bringing the year-to-date total to 99,000 units across 343 projects. Developers are increasingly catering to a wider audience, with offerings extending beyond luxury and ultra-luxury properties to include mid-income and affordable options.

With over 250 additional projects in the pipeline, Dubai’s real estate market is set to sustain high levels of activity into 2025, reaffirming its position as a global leader in property innovation and investment.

October saw the AED 1M-1.5M price tier racing ahead, growing by 2.4% to claim 21.3% of the market - the fastest growth across all segments. This surge was powered by exciting new launches like Vida Residences Club Point and Address Residences DHE in Dubai Hills, where upper-mid and high-category apartments sold for AED 2,235 and AED 2,604 per sq.ft., respectively.

On the other hand, the AED 1.5M-2M price tier struggled in October, dropping by 2.1% to make it the biggest market share of October, settling at 12.1%.

Luxury buyers, however, were out in force, with the AED 10M+ price tier climbing by 1.7% to reach an all-time high of 644 transactions. This was driven by standout sales of high-category villas in District One West 2, where 210 villas sold at an average of AED 2,388 per sq.ft.. Adding to this momentum were The Acres Estates (AED 2,037 per sq.ft.), upper-mid category villas at The Acres Villas (AED 1,873 per sq.ft.), and mid-category villas at Mirage in The Oasis (AED 1,626 per sq.ft.), all helping the top-tier segment thrive.

When condensing the nine price tiers into three broader groups, the mid-tier (AED 1M-3M) remained the frontrunner, commanding over half of total transactions (52.3%). While this was a slight decline of 0.7% compared to September, it still attracts the largest buyer share due to its high-quality, yet more affordable options.

The lower-priced segment (under AED 1M) accounted for 26.5% of the market, experiencing the steepest drop, down 2.3% month-on-month. This decline suggests a cooling in demand for entry-level properties, potentially as buyers shift towards the more active mid-market segment.

October's standout performer was the high-end segment (over AED 3M), which grew by 3.0% to represent 21.2% of total transactions. This growth was driven by increased activity in the luxury market, reflecting strong interest in premium and ultra-luxury properties.

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