Dubai’s residential property market is closing in on the sales figures from 2023, according to the latest report by Emirates NBD. As of this year, 104,250 residential units have been sold, leaving just 14,000 transactions shy of last year’s total.
Swapnil Rajasekharan Pillai, Director of Real Estate Research at Emirates NBD, anticipates that sales activity will stay consistent for the remainder of the year, potentially setting a new record for the number of residential units sold in the city.
In August, residential unit sales surged by 32% compared to the same month in the previous year. Year-to-date (YTD) sales have risen by 31% year-on-year, with 79,300 units sold from January to August in 2023. While August saw a total value of sales reaching AED 37.23 billion, this was slightly lower than July’s AED 40.5 billion. The total value of units sold in Dubai this year now stands at AED 265 billion, a 30% increase from 2023.
The significant rise in both transactions and sales values is attributed to an increase in luxury and high-end development launches, which has driven demand across the city.
Off-plan properties have proven especially popular, making up 66% of the 10,470 units sold in August. This trend is a sharp increase from 2018 when only 17,600 off-plan units were sold. So far this year, over 69,100 off-plan units have been sold, and this number is projected to exceed 100,000 by year-end.
Jumeirah Village Circle led the off-plan sales in August, with 1,000 units sold, followed by Dubai South with 860 units. Dubai South, in particular, has gained attention due to recent government announcements about the Al Maktoum International Airport. The sub-market has seen a substantial jump in transactions, with 1,290 units sold in the last two months alone.
Bu Kadra is another emerging area, with 780 off-plan units sold in August, adding to the 1,900 units sold so far this year. This area has attracted attention due to its proximity to Sobha Hartland and the steady launch of new projects.
Villa transactions remained strong, with 3,000 units sold in August, of which 75% were off-plan. The Dubai South area also dominated off-plan villa sales, accounting for 30% of all such transactions. Popular villa projects like Athlon by Aldar and The Valley by Emaar saw nearly 1,000 transactions in August alone. Meanwhile, Damac Hills 2, Villanova, and Al Furjan were hotspots for ready villa sales, driven by affordability, commercial accessibility, and nearby retail services.
Dubai’s real estate market continues to stand out globally for its significant supply of new units. This year, over 93,000 units have been launched, the highest in the city’s history. Most of these new projects are part of existing master-planned communities or standalone developments, with Dubai South, JVC, and Al Furjan among the areas set to see the most growth. New supply is also expected in upcoming locations like Dubai Maritime City and Bu Kadra.
Price growth has been evident across both apartments and villas, with apartment prices rising 12% year-on-year in mature sub-markets, and villa prices increasing by an impressive 23%. However, on a monthly basis, prices for both segments have remained relatively stable. New project launches are often priced at a premium compared to existing developments, sometimes as much as 30%, which could further drive up prices in established communities when these projects hit the market.
Original article reference: Khaleej Times.
