Dubai sets new record with over 25,400 off-plan property transactions in Q2 2024
City’s off-plan market soars to new heights in Q2 2024
Press Release
Dubai, UAE – The off-plan market broke a new record in the second quarter of 2024, recording 25,466 property transactions worth over AED 52 billion. This marks an astounding 81% increase compared to the same period last year, highlighting the city’s thriving property market and the strong demand from both end-users and investors.
Villas have seen a 44% year-on-year (YoY) increase in transactions and a staggering 76% rise in value. Off-plan apartments are dominating the market with an 86% YoY increase in transactions, as both individuals and end-users are increasingly opting for new developments over ready properties, which tend to be more costly.
The surge in activity highlights Dubai’s growing appeal, with each quarter consistently surpassing previous transaction records. Notably, the market has seen a dramatic shift towards off-plan transactions, as developers strive to meet the escalating demand through the launch of new projects. Dubai, being the first emirate to offer property ownership to non-Emiratis, is now witnessing the highest future residential supply in designated freehold areas, with over 70% of new developments located in these zones. This thriving environment is continually reshaping the city’s landscape, with innovative developments emerging across the emirate.
The market sentiment is heavily skewed towards off-plan projects, driven by a notable shortage of ready-to-move-in inventory. Developers are capitalising on this trend by launching new projects, reflecting their confidence in sustained market growth and their ability to meet future demand. So far in 2024, over 200 residential projects have been launched, adding nearly 50,000 units to the off-plan market. The luxury off-plan market, defined by properties worth over AED 15 million, remains robust, with Palm Jumeirah leading the way with 51 transactions, followed by Dubai Water Canal and Dubai Healthcare City II with 28 and 18 transactions, respectively.
This remarkable growth trajectory underscores Dubai’s position as a leading global real estate hub, offering a wealth of opportunities for investors and homebuyers alike.
Top Areas for Apartment and Villa Transactions in Q2 2024
In Q2 2024, several key areas emerged as hotspots for apartment and villa transactions. These top five areas (from a list of 75) reflect the preferences of buyers and the dynamic nature of Dubai’s real estate market:
Source: Property Monitor
Sales Price Mix
Dubai’s off-plan property market continues to thrive, catering to a diverse range of buyers. The villa segment, properties in the AED 2 – 5 million range are the most popular, representing 75% of sales. This price range attracts buyers seeking larger spaces and amenities without entering the ultra-luxury segment. Meanwhile, the off-plan apartment market is dominated by properties under AED 2 million, which account for 71% of total transactions. Driven by affordability and accessibility, this price range appeals to middle-income earners, expatriates, and low-capital investors.