Share
Dubai Branded Residences
Market Performance
In Q3 2024, Dubai's residential market experienced unprecedented transaction volumes, with 47,663 units sold, resulting in a total value of 130.69 billion AED. This period was a significant milestone, as it demonstrated the market's resilience and robust demand. The average price per square foot for residential properties was 1,537 AED, suggesting a consistent increase in property values.
Cash and Mortgage Transactions
The market experienced a significant number of mortgage registrations, with 54% of transactions financed through mortgages, despite the expectation of a decrease in interest rates. Despite the anticipated favorable lending conditions, this trend underscores a preference for securing properties through financing options and robust buyer confidence.
Primary Market Insights
The total transaction value of 64.91 billion AED was accounted for by primary market transactions (under construction properties), which accounted for 64% of all residential sales during Q3 2024. The off-plan sector experienced substantial growth, which was fueled by the high rental rates and the dearth of affordability in the ready market. The residential inventory of Dubai was expanded by 24,241 units as a result of the aggressive launch of 104 new projects, which attracted both residents and investors.
The resale of off-plan properties accounted for 8% of the total primary market transactions. This figure is monitored to identify potential speculation activity; however, it is presently consistent with previous quarters and appears to be in good health. Despite the fact that end-users prefer properties that are nearing completion for the certainty of a soon-to-be-completed home, investors are increasingly entering the market at phases closer to handover, with some even paying a premium.
Secondary Market Insights
The secondary market (available properties) exhibited consistent performance, accounting for 36% of the total transactions and contributing 65.78 billion AED to the total transaction value. This segment continues to draw purchasers who are interested in established communities and immediate occupancy, thereby contributing to the overall health and equilibrium of the residential market.
Prime Real Estate Market
This quarter, 1,080 transactions were recorded in the premier property market, which is defined as properties priced above 10,000,000 AED. This market segment continues to garner substantial interest and investment, which is indicative of its robust performance and appeal to high-net-worth individuals. Prime properties are a secure investment for wealth preservation, as they frequently maintain or increase in value over time. Furthermore, prominent properties are appealing for both personal use and investment due to their strong resale value and the potential to generate substantial rental income. The most expensive property sold during the quarter was a five-bedroom condominium in The One at Palm Jumeirah, which was sold for 275 million AED.
Supply Analysis
At present, Dubai is in the process of constructing 690 developments, which will result in the delivery of a total of 197,996 units between now and 2029. The number of units under construction in Jumeirah Village Circle (JVC) is 23,225, while Business Bay has 16,292 units. This robust pipeline guarantees that Dubai's residential market will continue to diversify and expand, accommodating a diverse array of investment strategies and consumer preferences.
In conclusion
Dubai's residential market continues to exhibit exceptional development and resilience. The market is poised for sustained growth as a result of the strategic developments, a robust pipeline of new projects, and the migration of HNWIs. In this dynamic and flourishing market, there are numerous opportunities for both investors and end-users.
