Dubai's Property Market Sees Steady Growth with Record-Breaking Sales in February 2024
Dubai property prices rose modestly in February by 0.83%, continuing a trend of slow price appreciation.
Overall sales transaction volume reached a new record high in February, up 30.4% year-on-year.
Mid-priced properties are gaining market share, with Dubai Maritime City being a popular waterfront location.
Mortgage activity is down slightly, but loans for new property purchases are increasing.
Off-plan property sales remain strong, particularly apartments, and are driving the high sales volume.
Dubai is expected to see three new master communities launched in 2024.
Off-plan sales account for nearly 60% of the market share, with Title Deed sales increasing slightly.
Resale transactions held steady at around 42% of the market share.
Almost 10,000 new off-plan units were launched in February, with a focus on apartments.
Dubai's real estate market continued to exhibit a stable growth pattern in February, with a modest price increase of 0.83% compared to the previous month's 0.2% rise. This steady price appreciation aligns with predictions, suggesting a slowing in rapid growth, yet with expectations of annual gains ranging between 5-8%. The Property Monitor Dynamic Price Index indicates current property prices at AED 1,294 per square foot, approaching a 5% increase from the 2014 peak.
February also set a new sales transaction volume record for the month, with a 30.4% year-on-year increase totaling 11,913 sales, the highest ever for February. The bulk of these transactions involved residential properties, including apartments, townhouses, and villas, making up 92.1% of sales. Notably, Dubai Maritime City is gaining traction as a favored waterfront location, particularly within mid-tier price ranges.
The off-plan market remains robust, with January witnessing 6,384 off-plan Oqood transactions, despite a slight month-on-month decline. However, the market for resale transactions remains stable, with a 41.7% market share in February. New off-plan project launches in February introduced close to 10,000 units, predominantly apartments, addressing the demand in this segment.
Mortgage activity saw a slight decrease, yet loans for new purchases are on the rise, indicating a continued interest in property investment. As Dubai prepares for the introduction of three new master communities in 2024, the groundwork is being laid for further development in this vibrant market.