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The real estate research and data platform Property Monitor expects that new projects in Dubai will maintain their historically high levels throughout the remainder of 2024, with expectations that an additional 35,000 to 40,000 units will enter the off-plan sales market.
The platform said that the launches of new development projects on the map are still at record high levels, with approximately 7,400 off-plan units added to the market for sale with an expected total sales value of about 16.5 billion dirhams, and apartments represent 82.2% of the volume of this new inventory, in While houses and villas represent 14.1% and 3.7%, respectively.
The platform added in its monthly report: “So far, the number of new projects launched so far has reached about 86 thousand units and 213.7 billion dirhams in total sales value, and it is on its way to exceeding 272 billion dirhams last year, and with nearly An additional 200 projects are in the planning stages and are being tracked by the real estate monitoring team. We expect new projects in Dubai to maintain their historically high levels throughout the remainder of 2024.”
The report expected the market to continue its upward trajectory with price growth and high transaction volumes, and while we do not expect a general slowdown, the gap between ready and completed property sales is likely to widen, partly due to the strong influx of real estate projects on the map, and to the availability of inventory at appropriate prices, and with Mortgage rates ease (lower interest rates) and potential buyers have more purchasing power.
In August, Dubai property price growth saw its second highest monthly gain in the current market cycle with a monthly gain of 2.48%. This is more than double the growth rate compared to last month (1.22%), in addition to the average monthly growth we have seen so far ( 1.24%).
The platform added: “It is important to note that while the index in these communities is driven upward, not all properties in the communities are increasing at the same rate, with older units seeing more moderate gains when viewed in isolation from their new-build counterparts.” According to the platform’s dynamic price index for real estate monitoring, real estate prices in Dubai rose by 2.48% in August, to currently reach 1,431 dirhams per square foot, that is, by 16% compared to the previous historical highest level and the peak of the market in September 2014, and this raises the overall growth of the current market rise to 56.8%, representing the forty-sixth month since late 2020 levels.
