There will be a lot of new project launches in the Dubai real estate market because various developers have almost 200 more projects in the works.
In the first eight months of their launch, new project launches sold almost 86,000 units for a total of Dh213.7 billion. The figures are expected to exceed Dh272 billion from the previous year, according to the most recent Property Monitor report from Cavendish Maxwell.
“With nearly 200 additional projects in the planning phases being tracked by the Property Monitor team, we anticipate that new launches will maintain their historically high levels throughout the remainder of 2024 and for a further 35,000-40,000 units to enter the off-plan market.”
“A significant growth of new development activity across myriad pricing segments and communities is expected, particularly for apartments in Dubai Islands, Jumeirah Garden City, Dubai Maritime City, Motor City, and Dubai Land Residence Complex, as well as single-family units — townhouses and villas — in The Valley, The Acres, The Oasis, and The Height Country Club,” according to the report.
In the last two years, Dubai has also seen a large influx of foreign developers looking to take advantage of the extraordinary demand from locals and investors for off-plan properties. The emirate’s population has grown significantly, to 3.781 million, and with it, prices and rentals.
With 16,145 sales transactions in August, the total volume of sales transactions climbed by 0.28 percent, making it the second-highest month overall and the highest August volume ever.
“Absent any significant economic, geopolitical, or unforeseen global events, current market conditions are likely to provide for continued growth throughout 2024. On a year-on-year basis, prices have increased by 17.7 percent in August and now marks 42 straight months of year-on-year increases, while on a year-to-date basis, prices have increased by 11.5 percent in August 2024 compared to 10.9 percent in August 2023,” said Cavendish Maxwell’s report.
“Dubai’s property market continues to show strong momentum with notable price growth. The surge in off-plan project sales is a significant driver, while high transaction volumes reflect sustained buyer confidence, despite the temporary dip in mortgage activity,” said Zhann Jochinke, director of market intelligence and research at Cavendish Maxwell.
With 16,145 sales transactions in August 2024, there was a slight 0.2% increase over July 2024. The percentage of Oqood and Title Deed property transactions during the month was skewed toward the former, with Oqood registrations making up 64.8% of all transactions, an increase of 6.5% from month to month, according to the report.
