Property Monitor, a real estate research and data platform, has forecast that new developments in Dubai will maintain their historically high levels throughout the rest of 2024, with an additional 35,000 to 40,000 units expected to enter the off-plan sales market.
The platform said that new off-plan development launches remain at record high levels, with nearly 7,400 off-plan units added to the market for sale, with a total expected sales value of around AED 16.5 billion. Apartments account for 82.2% of this new stock, while townhouses and villas account for 14.1% and 3.7% respectively.
The platform added in its monthly report: “To date, the number of new projects launched to date has reached approximately 86,000 units and AED 213.7 billion in total sales value, and is on track to exceed AED 272 billion last year. With approximately 200 additional projects in the planning stages being tracked by the real estate monitoring team, we expect new projects in Dubai to maintain their historically high levels throughout the rest of 2024.”
The report expected the market to continue its upward trajectory with price growth and higher transaction volumes. While we do not expect a general slowdown, the gap between ready and completed property sales is likely to widen, due in part to the strong influx of off-plan real estate projects, the availability of inventory at reasonable prices, and with mortgage rates easing (lower interest rates) and potential buyers having greater purchasing power.
In August, Dubai’s property price growth saw its second-highest monthly gain in the current market cycle, with a monthly gain of 2.48%, more than double the growth rate from last month (1.22%), as well as the average monthly growth we have seen so far (1.24%).
“It is important to note that while the index in these communities is driven by the upside, 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,” the platform added. According to the platform’s Dynamic Price Index for Property Monitor, Dubai property prices rose by 2.48% in August, currently standing at AED 1,431 per square foot, up 16% from the previous all-time high and market peak in September 2014. This brings the overall growth in the current market upside to 56.8%, and represents the 46th month since late 2020 levels.