Dubai real estate is likely to well surpass AED 500 billion in sales by the end of 2024 after recording a historic October that boosted year-to-date figures. The total sales for 2024 already reached AED435.6 billion up to the end of October through 150,651 transactions, thereby breaking through the previous record of AED409.8 billion posted by 132,628 transactions at the close of 2023.
The sheer AED 500 billion will easily be touched at the end of the year as Dubai’s sales this year for the month average around AED 43.56 billion. Significant growth in the last five years has been indicated with an update that fäm Properties unveiled to notify the transactions achieved during October, around AED61.1 billion deals have been done, amounting to 798% higher than that of October 2020.
Trend for Villa, Apartment, and Commercial Property
In October, villa sales grew 102% compared to last year, in transactions worth AED20.5 billion. With 3,830, apartment sales also fared well, recording a 67.2 percent increase in volume, at AED 28.1 billion in 15,662 transactions. This was also observed in commercial property sales, though at 424 transactions totalling AED916.2m, though the volume stood at 1.9% down from the previous October. While the average price per square foot of commercial properties grew by 7.1%, it stood at AED1,585.
We witness clear trends of sustainable demand in this market wherein supply stands at its all-time high together with record transaction volumes, said Firas Al Msaddi, CEO at fäm Properties.
October Sales Peaks Across Five Years
A calendar month that has seen significant surges in Dubai property sales is October, which attained AED 6.8 billion in 2020 with 3,300 transactions to AED 13.1 billion in transactions of 5,300 in 2021 and to AED 25.2 billion or via 8,700 transactions in 2022, AED 39.48 billion or 12,100 transactions in 2023, and a new record of AED61.1 billion in October this year.
Top-Performing Areas and Projects in October
Several areas remained high in terms of transactions volume and value in October. Jumeirah Village Circle topped the list with 1,487 transactions worth AED1.5 billion. Business Bay accounted for 1,135 transactions valued at AED2.6 billion, and Dubai Hills Estate recorded 867 transactions valued at AED2.1 billion. Other high-performing districts included Dubai South, which realised 847 transactions valued at AED 877.6 million, and Motor City with 819 transactions valued at AED 973.4 million.
Off-plan projects, Greenridge was the best selling by value with 332 villas sold for AED1.18 billion. Off-plan apartments were topped by Sobha Orbis, with 761 units selling at AED891.6 million. Ready apartment sales were led by Canal Front Residences with 92 transactions amounting to AED 258.9 million. The best-selling ready villa project was Shams Townhouses, with 16 properties sold for AED42.4 million.
Price Distribution and Market Composition
Properties with prices above AED 5 million were 8%, while 33% fell within the AED1-2 million bracket. Below AED 1 million, sales made up 27%, between AED2-3 million 19%, and 13% was within the AED3-5 million bracket. First sales by developers were the most voluminous at 69% in volume share and 66% in value share, while the secondary market source is that of all sales; an amount that equates to 31% in volume and 34% in value shares.
Nothing but strength is in store for the real estate market of Dubai with the approach of the year’s end, since investors who are still terribly interested and have enormous interest place their money in the local and international markets, set to close another record-breaking year at an estimated AED 500 billion in sales.
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