September 2024 Dubai Real Estate Market Report

Send us a textWant to know more? 📞 +971553523125✉️ [email protected] September, the Dubai real estate market experienced a record-breaking surge in sales transactions and a significant jump in mortgage activity. Property price appreciation has returned to a more moderate pace, and off-plan project launches continue to rise, further fueling market momentum.Record-High Sales TransactionsSeptember saw a remarkable 11.7% increase in the total volume of sales transactions, with 18,038 deals recorded—making it not only the highest September on record but also the highest volume in any month overall. With three months remaining in the year, the market is on track for a nearly 30% year-on-year increase in sales.This growth reflects more than just a post-pandemic recovery; it underscores the unique resilience and dynamic nature of the UAE real estate market. The ongoing commitment of the Dubai governments, with their strategic plans, initiatives, and proactive market evolution, continues to drive growth.Off-Plan Market SurgesOff-plan project launches remain strong, with sales absorption maintaining a rapid pace. This has pushed off-plan properties to account for over 72% of the market share. Developers and investors alike are capitalizing on the growing demand for new, under-construction properties, which continues to buoy market activity.Moderate Price AppreciationProperty price appreciation returned to a more moderate pace in September, rising 1.14% month-on-month. As the market enters the final quarter of the year, expectations are that Dubai’s property market will sustain its positive momentum, driven by steady price growth and strong transaction volumes.However, it’s essential that monthly price appreciation remains moderate—ideally within the 1% range or lower. Any sustained price increase above 2% could signal the risk of market overheating, which would need to be carefully managed to avoid potential volatility.Mortgage Transactions Jump Amid Lower Interest RatesIn parallel with the rise in sales, mortgage transactions saw a 16.6% increase in September, driven by lower interest rates. As borrowing costs ease, the demand for ready properties is expected to grow, especially among buyers seeking to finance their purchases.However, sellers of ready properties should be cautious about pushing aggressive pricing strategies. Overpricing could deter buyers, thus diminishing the opportunity to take advantage of the current uptick in demand.Outlook for Q4As the Dubai real estate market enters the final quarter of the year, the outlook remains positive. Both steady price growth and robust transaction volumes are expected to persist, further solidifying Dubai’s status as one of the world’s most attractive property markets.

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