Record transactions and new units: Dubai’s property market thrives

Dubai is anticipated to welcome over 100,000 new apartments and villas to the market within the next 15 months, significantly alleviating pressure on property prices and rental rates in the emirate, said Khaleej Times. According to a report from Emirates NBD Research and Reidin, as of September, more than 21,300 units have already been delivered in the city, with an additional 110,000 units expected to be completed by the end of 2025.

The report highlights that 21,300 residential units were delivered in the first nine months of 2024, and there are 25,000 more currently under construction. By 2025, it is projected that around 75,940 units will be available across various areas of Dubai. As the population continues to rise, there is a pressing need for new supply to meet the escalating demand from property buyers and renters. The influx of professionals and investors has led to a surge in demand for new units, pushing prices and rents to unprecedented highs. This robust supply is anticipated to stabilize prices and lower rental rates in the emirate.

A real estate researcher noted that September recorded no signs of a slowdown, with over 16,800 residential units sold, marking a new monthly record. The total property transactions in Dubai from January to September exceeded 121,100 units, representing a 31% increase year-on-year. “The ongoing and significant growth in the residential market is reflected in these transaction figures. In 2019, there were 23,661 total transactions, while more than 32,700 units were sold in Q3 2024 alone. In 2024, the average quarterly sales reached 27,000 units, surpassing 16,200 quarterly transactions recorded in 2023,” he explained.

While another research termed Dubai as a consistently strong global real estate hub and added that this quarter had been one of the most dynamic in the past year, with notable year-on-year growth in both transaction values and volumes. The off-plan market was leading the way, with investors eager to acquire future-ready assets that provide long-term value. He said there was appeal of luxury properties for high-net-worth individuals, particularly in sought-after communities like Palm Jumeirah and Dubai Hills Estate. “Investors are not only purchasing property but also investing in a lifestyle, choosing Dubai for its world-class amenities, safety, and strategic location,” he remarked.

The off-plan property segment in Dubai has seen an increase in market share, now accounting for 72% of total demand in September, up from 62% in January. In September alone, over 12,100 off-plan units were sold, setting a record for Dubai. Meanwhile, the demand for completed and ready units has remained stable, with an average of 4,400 transactions monthly throughout the year, slightly rising to 4,700 transactions in September.

In September, total sales were valued at Dh38.12 billion, an increase from Dh37.32 billion in August. The cumulative value of units sold in Dubai has reached Dh303.45 billion, indicating a 22% year-on-year growth. In Q3, an additional 25,300 units were introduced to the market. With these new launches, the overall supply has risen to 106,700 units compared to 76,000 new units launched from January to September 2023. “If new project launches proceed at this rate, the city may witness a total of 135,000 new unit launches by the end of the year,” Pillai noted.

Dubai’s real estate market appears poised for continued growth, bolstered by strategic infrastructure projects and increasing interest from high-net-worth individuals. The market’s allure is rooted in its business-friendly environment and solid development pipeline, making it a favoured destination for global investors.