Dubai’s Real Estate Boom: Record Sales and 90,000 New Homes

September saw Dubai establish a new record for monthly property transactions as the emirate's market registered 18,038 deals during this time frame - surpassing its previous high of 17,139 in May. The upsurge reflects sustained momentum and investor confidence in Dubai's real estate sector, further cementing the emirate as a globally diversified housing market.

Almost entirely residential, 17,151 units were sold by buyers closed in transactions. Developer Emaar, one of the leading players in the market accounted for off-plan sales during the month which made 73% of the total number of sales. The second position in the sales ranking was occupied by Damac Properties. And the third position in terms of sales was occupied by new buildings from Sobha.

The growth didn't abate this September, putting Dubai's property market well on the way to reaching last year's annual numbers – between January and September 2024, transactions went past 131,000 units. According to Property Monitor, this figure is less than 2% short of 2023's total, suggesting a robust end to the year.

According to industry analysts, there is a year-over-year boost on its way with nearly 170,000 transactions anticipated as the calendar comes cross yearend; that would approach an increase of almost 30%. Average property prices rose slightly, reaching Dh1,448 per square foot, reflecting a modest 1.14% month-over-month increase. For different property types, median prices stood at:

• Dh 2.76 million for townhouses,
• Dh 7 million for villas,
• Dh 1.3 million for apartments.

Dubai unveils plan for 90,000 new homes over next two years

Another incredible piece of news highlighting the UAE's commitment to records. The property market in Dubai is still growing and over the next two years, 90,000 new residential units are set to come onto the market. Data from fäm Properties suggests that by 2025, an estimated 41,800 units will be added, setting a new annual record, with a total of 48,400 units anticipated in 2026.

The one-day event, Game Changers – Dubai Real Estate Summit takes place on October 24 at the Coca-Cola Arena and will unite those involved in reaping the rewards of Dubai's demanding real estate environment. The bulge in the development potential of new projects totalling 288,020 units under construction among over 1,000 is geared up to cater for the rising number.

With the total unit launches for 2024 already reaching 99,779, surpassing last year's record of 101,654 seems likely. Mortgage activity also spiked in September, with a notable 16.6% increase in transactions, spurred by reduced interest rates, resulting in nearly 4,200 new mortgage registrations as investors seized the opportunity to invest.

A good time to invest

These 2 pieces of news make it clear that the property market in Dubai is still at its peak. Not only is it showing stable growth and return on investment figures, but it is also growing. Future projects and development in the city are attracting many tourists, expats, and businessmen from all over the world. With its flexible policies, Dubai has managed to turn the city into a global business hub.

Buying property for living or investment is a serious decision that should be approached thoughtfully. Many investors who have made the right investment get solid dividends from renting out houses. Below we give you a checklist that will help you not to forget important points before buying a property:

1. Purpose of purchase (investment or residence);
2. Neighbourhood;
3. Type of ownership (freehold and leasehold);
4. Additional costs (maintenance, concierge, parking, etc.);
5. Market value appraisal;
6. Rental potential;
7. Potential for resale.