Uncovering Dubai's AED 190 Billion Sales, Million-Dirham Rents, and Off-Plan Boom

On this week’s episode of Taking Care of Business, join Operations Director; Paul Kelly alongside our Managing Director; Marc Walters to chat all things H1 2024.

Tune in to find out how many new units have been handed over and launched so far, the top sales areas, communities to look out for, the growing luxury market and much more!

Let’s dive into their conversation…

Looking into: An overview of the market

Paul and Marc took a deep dive into the Allsopp & Allsopp H1 2024 report.

Paul shared; according to the Dubai Land Department, the first six months of the year saw a total sales value of AED 190 billion, this was a 38% increase from H1 2023 and a 7% increase from H2.

He further added the total sales volume was 74,467, a 36% year-on-year increase and a 17% increase compared to H2.

Breaking down the data:

• Apartments accounted for 82% of transactions and 60% of the market's total value.
• Villas made up 18% of transactions and accounted for 40% of the market's value.
• 79% of all sales were in the AED 0-3 million bracket, indicating that affordability is at the forefront for all buyers.

Seeing a rise in first-time buyers

Marc shared insights on the rise in first-time buyers, he spoke on how this is driven by increasing rental prices post-pandemic.

He spoke about how many people prefer to invest in their own property rather than pay rent, which essentially means paying someone else's mortgage. Additionally, people are seen moving from the UK and liquidating their assets there to invest in Dubai. This trend is also influenced by Dubai's efforts to create a more attractive and appealing environment to attract long-term residents.

This comes in line with how Dubai's focus on enhancing lifestyle and infrastructure is evident with projects like the Jebel Ali Beach Project and the new green corridor set to come along the E311 highway. These initiatives include solar pannelled metro systems, cycle paths, and pedestrian areas, aiming to create wellness-focused communities, making Dubai a more attractive place for long-term residence.

A seller's vs. A buyer's market:

Marc shared that while the market might seem like a seller's market due to limited stock, buyers still find value as property prices are expected to rise. For example, some properties have seen a 10-15% increase in value within just a couple of months. This dynamic makes the market favourable for both sellers and buyers, depending on the perspective and we have noted an AED 190 million value of all sales in H1 2024, which clearly indicates this is also a buyer’s market.

Further to that, Paul shared how our own figures have shown a 31% increase in sales volume compared to H2 last year, and a 69% increase in the ultra-luxury market - these are properties over $10 million.

On the lettings side, there has been an 81% increase in viewings and a 27% increase in prices compared to H1 2023. A third of tenants are now paying in four or more checks, reflecting higher flexibility in rental payments and market-wide.

Looking into the off-plan market - At risk of oversupply?

Marc shared that with a new launch every 17 hours on average this year, there were 47,792 units launched in the first half of the year.

He said, that despite concerns about potential oversupply, Marc believes that the influx of people and continuous development will balance the supply and demand. Dubai's ongoing initiatives and infrastructure projects will likely attract more residents, maintaining the market's upward momentum.

Keen to know more about the H1 2024 stats into Dubai’s property market, tune into Taking Care of Business, every Friday.