November 11, 2024
The Dubai real estate market has been flourishing for many years and has continued to impress Globally, the market hits the extraordinary peak in the year 2024 in the month of October making it the highest position in the Dubai real estate sector. According to the data presented by the Property Monitor, a leading real estate intelligence organisation, the figures are eye catching for the investors to again ponder on investment of off-plan properties in Dubai. The article covers all the trending highlights regarding the statistics achieved in October 2024, factors responsible for achieving this number and the role of developers in contributing to achieving highest values. Some supportive aspects and news associated with market trends will be discussed.
An Overview of Figures from September to October 2024
According to the company, October sales were 13% higher than September figures, bringing monthly transactions to over 20,000 for the first time ever. Nearly three quarters (73%) of transactions were for off-plan or under-construction properties, according to preliminary data from Property Monitor's October report on Dubai's real estate market. Approximately over 19,400 transactions, the residential sector accounted for nearly 95% of all sales. Following a record-breaking September, the Dubai real estate market hit yet another new high in October, according to Zhann Jochinke, Chief Operating Officer of Property Monitor. Once more, the bulk of sales were off-plan and under-construction properties, demonstrating the industry's ongoing investor confidence. Having lower interest rates, numerous upcoming projects, and an increasing number of buyers instead of renters, Dubai's real estate market is showing no signs of slowing down.
These figures have indicated some important aspects that must be analysed while discussing emerging trends in real estate that have played an important role in attaining the best market figures. Some of these topics are discussed below:
Growing Popularity of Off-Plan and Under-Construction Properties
A startling 73% of all transactions in October involved off-plan and under-construction properties, indicating investor confidence in Dubai's long-term growth. There has been an increased demand in the off-plan properties or the properties that have been still under construction. The second main aspect is the rising interest rates in properties all over the World but Dubai offers comparatively less rates in comparison. The keen observation of developers in real estate Dubai have provided various alternative new projects in different neighbourhoods that attracts both locals and outsiders.
Major Off-Plan Sales Trends
According to Property Monitor there has been an outnumbered sales trend in the off-plan properties highlighting the increased demand of these types of properties in Dubai. Many factors such as flexibility in the payment plans that makes it easier for the buyers to distribute their finances also increases the chances of future property appreciation as developments are made. Off-plan investment is appealing because it provides a long-term opportunity to purchase at competitive pricing before completion are the driving forces behind the investors motivation in off-plan properties.
Role of Top Developers in October 2024
The developers have made a keen study regarding the needs and demand in the real estate market and have resulted in attaining the best figure of the year. Some of the prominent names that have already presented major projects in Dubai are the backbone of real estate development and have a significant role in October 2024. Emaar has recorded 2,053 sales in recent months, maintaining its dominant 16.3% market share. Closely behind, DAMAC demonstrated its strong presence in the industry by securing 14.8% of the market with 1,863 registrations. Another significant impact was made by Sobha, which further cemented its position as a major player in the real estate market by snagging 11.6% of the market with 1,463 transactions. These numbers demonstrate the market's competitiveness, as a large portion of transaction activity is driven by these leading developers. Popular areas for apartment ownership were Dubai Marina, Downtown Dubai, Jumeirah Village Circle, Business Bay, and Palm Jumeirah. Dubai Hills Estate, Al Furjan, Palm Jumeirah, Dubai Land and Mohammed Bin Rashid City were themost desired areas to own villas/townhouses.
Highest Transaction in October
A villa at Jumeirah Bay sold for AED175 million, the highest price of any completed property in October. According to Property Monitor, the most expensive off-plan sale was a villa at EOME on the western crescent of Palm Jumeirah, which sold for AED170.5 million. A magnificent villa in Palm Jumeirah valued AED 170.5 million, was the month's highest off-plan transaction. The increasing demand for the luxury real estate in the prominent areas of Dubai is demonstrated by the high-value sale. The exceptional record price of Palm Jumeirah villa shows the motivation of investors in the luxury off-plan developments.
Rental Market Preferences
Notable trends were also found in the rental market. 34% of tenants who were looking for apartments chose unfurnished apartments, whereas 65% of them preferred furnished apartments. Renters of townhomes and villas were more evenly divided, with 46% selecting furnished apartments and 53% preferring unfurnished options. Dubai Marina, Downtown Dubai, Business Bay, Jumeirah Village Circle, and Jumeirah Lake Towers were the most searched locations for flat rentals. Jumeirah, Dubai Hills Estate, Damac Hills 2, Al Barsha, and Umm Suqeim were popular neighbourhoods for renting villas and townhouses.
Supportive Factors Fuelling Dubai Real Estate Boom
Interest Rates: Reduced interest rates and advantageous financing term
Policies That Encourage Investment: Government programs that encourage foreign investment
Infrastructure Development: Growing numbers of homes and businesses
Summing Up
The historic figures for October demonstrate the real estate market's ongoing resilience and strength in Dubai, which is fuelled by strong demand for both off-plan and existing properties. The industry is still in a strong position to grow thanks to strategic initiatives and changing consumer preferences. Dubai has continuous efforts in maintaining its position in the World real estate sector and many investors are drawn towards it because there are higher investment opportunities with greater return on investment.
