First sales from developers outnumber re-sales in the secondary market
Dubai’s real estate market recorded total sales worth Dh141.9 billion in Q3 2024, setting an all-time high for a single quarter, according to fäm Properties.
This eclipsed the previous quarterly sales record of Dh124.07 billion in Q2 this year, and represented a 30.1 per cent year-on-year rise in value
A market update issued on Thursday by fäm Properties revealed there were 50,423 overall sales transactions in Q3, a 37.9 per cent year on year increase in volume and a 16.6 per cent rise on Q2.
The 39,058 apartment sales worth Dh70.5 billion represented 77 per cent of the total Q3 transactions, and showed a 43.9 per cent increase in volume on the same period last year.
Meanwhile, 8,156 villas sold for Dh39.2 billion, a rise in volume of 16.6 per cent over Q3 2023 and an increase of 18.4 per cent on the previous quarter.
Rising property values in recent years were highlighted by a median price of Dh1,511 per sq ft, compared with the Q3 rates of Dh1,017 in 2021, Dh1,179 in 2022 and Dh1,405 last year.
Sales of 2,102 plots for Dh29.9 billion represented a 45.9 per cent leap in volume on Q3 last year and a 42.3 per cent increase on Q2. In commercial real estate, 1,112 sales worth Dh2.3 billion were up 12.1 per cent in volume on Q3 last year.
“The figures once more emphasise the resilience of the Dubai real estate market and the consistent growth we’ve seen in recent years, which continues to enhance investor confidence,” said Firas Al Msaddi, CEO of fäm Properties.
“This ongoing upward trend reinforces Dubai’s status as a leading destination for real estate investment, attracting growing interest from global investors, as well as buyers from the local and regional markets.”
Dubai’s Q3 property sales over the last five years have now risen to the current peak level from Dh18.1 billion (8,600 transactions) in 2020 to Dh42.4 billion (15,900) in 2021, Dh69.5 billion (25,500) in 2022 and Dh109.2 billion (36,700) last year.
The top five performing areas of Dubai in Q3 were Jumeirah Village Circle (4,467 transactions – Dh5.33 billion), Dubai South (2,910 – Dh8.25 billion), Business Bay (2,651 – Dh7.22 billion), Wadi Al Safa 5 (2,382 – Dh5.3 billion) and Dubai Hills Estate (2,358 – Dh7.38 billion).
The most expensive individual property sold in Q3 was a luxury apartment at the One at Palm Jumeirah, which fetched Dh275 million.
With properties worth Dh1-2 million accounting for 31 per cent of sales, 29 per cent were below Dh1 million, 18 per cent between Dh2-3 million, 14 per cent between Dh3-5 million, and 8 per cent more than Dh5 million.
Overall, first sales from developers significantly outnumbered re-sales in the secondary market – 68 per cent over 32 per cent in terms of volume and 63 per cent against 37 per cent in value.
Courtesy of Khaleej TImes
