Dubai Property Market Report – July 2024: A Record-Breaking Month Amidst Scorching Summer
The Dubai real estate market in July 2024 has defied seasonal expectations, registering unprecedented highs in both sales and mortgage transactions. Typically, the summer months in Dubai, characterized by soaring temperatures, witness a cooling of market activities. However, this July proved otherwise, with the market continuing its remarkable growth trajectory that has been evident throughout 2024.
Key Highlights of July 2024
• Property Price Growth: The Property Monitor Dynamic Price Index (DPI) showed a 1.22% increase in property prices, bringing the average price per square foot to AED 1,397. This price level is 13.2% higher than the previous peak recorded in September 2014 and 77.9% above the market trough of April 2009.
• Sales Transaction Volumes: Sales transactions soared by 12.8% compared to June 2024, reaching 16,113 transactions, the highest ever recorded for the month of July. Residential properties dominated the market, accounting for 93.4% of all transactions.
• Off-Plan Sales Domination: Off-plan transactions continued to lead the market, making up 58.3% of all sales, with a significant increase in Oqood registrations. After adjustments for registration technicalities, off-plan sales captured a staggering 67.1% of the market share.
• Mortgage Transactions: Mortgage volumes hit a record high for July, with a 20.2% increase from the previous month, totaling 4,033 loans. This marked the second-highest month on record, only surpassed by March 2023. The average loan amount reached AED 1.83 million with a loan-to-value ratio of 76.7%.
Market Dynamics and Insights
The continued strength of the off-plan market is a testament to Dubai’s dynamic real estate landscape. Developers have been highly active, introducing nearly 9,000 new off-plan units to the market in July alone. The robust pipeline of off-plan projects has kept the market vibrant, with high absorption and sales velocity rates. Notably, Emaar Properties led the market with over 2,000 off-plan sales, further solidifying its dominance.
The resale market also saw a slight increase in activity, with a 0.5% month-on-month growth. Resales accounted for 41.0% of the market, with off-plan resales reaching a historic high of 25.6%. This uptick in resale activity, particularly in properties nearing completion, suggests healthy speculative interest, although there are no immediate signs of concern.
Price Tier Analysis
The mid-tier price segment (AED 1m—3m) continues to dominate, representing 48.5% of the market, up by 4.2% from June. The AED 1.5m-2m price tier saw the fastest growth, increasing by 3.5% and capturing 14.5% of the market. This growth is primarily attributed to successful new developments such as Palace Residences in Dubai Hills and Arlo in Dubai Creek Harbour.
Conversely, the high-end price segment (over AED 3m) experienced a slight decline, down 3.2% from June, while the low-price tier (under AED 1m) saw a marginal decrease, reflecting a market shift towards mid-tier properties.
Outlook for the Rest of 2024
As we move into the second half of 2024, the Dubai real estate market is poised to maintain its upward momentum. The combination of robust off-plan activity, strong demand from both investors and end-users, and favorable mortgage conditions suggests that the market will continue to perform strongly. However, as with any market, sustained growth will depend on the balance between supply and demand.
The extraordinary market activity in the first half of 2024 has set a new benchmark, with transaction volumes on track to exceed 170,000 by year-end. This surge has been driven by a record number of off-plan launches, and as long as absorption rates remain high, the market is likely to stay resilient.
In summary, July 2024 has been a landmark month for Dubai’s property market, characterized by record-breaking sales and mortgage transactions. With no immediate signs of a slowdown, the market remains vibrant and offers a wealth of opportunities for investors.
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