Dubai’s property market maintained its upward momentum in October 2024, with capital values continuing to rise at a slightly slower pace than previous months. Here’s a comprehensive overview of the market’s performance:

Capital Values

• Villas: 2.2% monthly increase since September ’24, prices have risen by 32.4% since last year
• Apartments: 1.7% monthly increase since September ’24, 24.3% annual growth

Top Performing Areas

Villas

Palm Jumeirah: 42.5% annual growth

Palm Jumeirah continues to lead the pack with an impressive 42.5% annual growth in capital values. The island’s limited supply of only 4,000 villas and strong demand from local and international buyers continue to drive prices upward. The area’s world-class amenities, including luxury hotels such as The Five, The Atlantis, and The Royal Atlantis contribute to its enduring appeal.

Jumeirah Islands: 42.3% annual growth

Jumeirah Islands maintains its position as one of the top-performing villa communities in Dubai, with a remarkable 42.3% annual growth in capital values. This small community of 800 villa has 3x’d in price since 2021, over riding similar villa communities by miles.

Apartments

The Greens: 32.4% annual growth

The Greens has emerged as the top-performing apartment area, with a substantial 32.4% annual increase in capital values. This family-friendly community’s popularity can be attributed to its lush landscaping, convenient amenities, and proximity to key areas like Dubai Marina and Sheikh Zayed Road.

Here is an example of a studio apartment in The Greens: https://viewit.ae/listing/Apartment-for-rent-The-Greens-954

Discovery Gardens: 30.9% annual growth

Discovery Gardens has shown impressive growth, with a 30.9% annual increase in apartment values. The area’s affordability and well-maintained gardens, community facilities and proximity to the metro and Ibn Battuta mall continue to attract both investors and end-users.

Market Dynamics

Off-Plan vs Ready Homes

October 2024 saw a record monthly volume in off-plan sales, with transactions growing 13.1% month-on-month and an astounding 99.7% year-on-year. Off-plan sales now represent almost three-quarters of all home sales this month, indicating strong investor confidence in Dubai’s future developments. Affordable down payments, payment plans and post handover financing options make it easier for a lot of folks to be able to afford a new home and off set the rent they normally pay to landlords. Here is an example of an off plan listing currently under construction in Mudon: https://viewit.ae/listing/Villa-for-sale-Mudon-2121

Ready home transactions also showed positive growth, increasing by 11.7% monthly and 30.1% annually. Ready properties will always be the backbone of the city but for now, consumer and investor sentiment lies in off plan. Ready market properties are often subject to market forces making them slightly less affordable for regular families and with mortgage rates hovering around 4.2-4.3%, buyers may continue to choose off-plan options till the market evens out a bit.

Prime Home Sales

The luxury segment remains robust, with 21 transactions for ready properties priced over AED 30 million. These high-value sales were concentrated in prime areas such as Palm Jumeirah, Emirates Hills, Jumeirah Bay Island, Al Barari, Dubai Hills Estate, and District One. Here is an example of an ultra luxury villa in MBR City for AED 49m: https://viewit.ae/listing/Villa-for-sale-Mohammad-Bin-Rashid-City-1690

Top Developers and Locations

Leading developers in October’s sales charts include Emaar (14.7%), Damac (13.6%), Sobha (8.7%), Azizi (6.2%), and Dubai Holding (3.4%).

Popular off-plan locations included projects in Jumeirah Village Circle (6.5%), Dubai Hills Estate (5.6%), Motor City (5.6%), and Dubai South (5.5%). For ready homes, top locations were Jumeirah Village Circle (10.7%), Business Bay (7%), Dubai Marina (6.2%), and Downtown Dubai (4.5%).

Market Outlook

Dubai’s real estate market continues to demonstrate resilience and growth, with both the villa and apartment segments showing substantial year-on-year appreciation. The surge in off-plan sales suggests strong investor confidence in the city’s future developments.

As we move towards the end of 2024, the Dubai property market remains an attractive proposition for both local and international investors. The continued influx of high-net-worth individuals, coupled with government initiatives to boost the economy, is likely to sustain the positive momentum in the real estate sector.

Investors and homebuyers should keep a close eye on emerging areas and off-plan projects, which offer potential for significant returns. However, as always, due diligence and careful consideration of individual investment goals are crucial when navigating Dubai’s dynamic real estate landscape. As always, keep checking Viewit for the latest information on Real Estate updates and news in and around Dubai!