Dubai's real estate market has maintained its record-breaking momentum in the third quarter, with a notable shift towards end-users as more buyers choose to reside in the properties they purchase, according to data released on Wednesday by Property Finder, a leading real estate portal.
The emirate recorded a total of 50,439 transactions valued at AED 142 billion, marking a 15% increase in volume and a 14.5% rise in value compared to the second quarter. Off-plan transactions made up 63% of the total, up from 55% in Q3 2023.
Off-plan sales saw a significant year-on-year volume growth of approximately 58.7%, reaching 31,800 transactions, the highest quarterly volume ever recorded. The value of these transactions surged by 42.3% year-on-year, amounting to AED 67.45 billion, compared to AED 47.39 billion in Q3 2023.
The market surpassed its 2009 peak, with 31,800 transactions compared to 26,629 in 2009, reflecting a 19.4% increase. Existing property transactions also rose by 13.3% year-on-year, with 18,639 transactions compared to 16,450 in the same quarter last year. These accounted for 37% of total transactions in Q3 2024, with a 7.9% increase from Q2 2024. The value of these transactions increased by 20.8% year-on-year, reaching AED 74.53 billion, compared to AED 61.7 billion in Q3 2023, contributing to 52% of total sales transaction values, down from 57% in Q3 2023.
In Abu Dhabi, residential real estate transactions totaled 1,813, valued at AED 4.92 billion, accounting for 63% of the total transaction volume across residential, commercial, and other sectors, and 56% of the transaction value. The off-plan market registered approximately 746 transactions, making up 41% of the total in Q3 2024, with values reaching AED 2.56 billion, contributing to 52% of the quarter's total.
A total of 1,067 transactions in Q3 2024 represented around 59% of total transactions, compared to 747 in Q3 2023, contributing to 24% of the total. This marked a 42.8% year-on-year growth, the highest transaction volume and value recorded in the last eight quarters. The value of existing/ready transactions in Q3 2024 reached AED 2.37 billion, contributing 48% of the total sales transaction value, compared to 15% in Q3 2023, representing a 44.8% increase from AED 1.6 billion in Q3 2023, despite a decrease in overall year-on-year transactions.
"Q3 2024 achieved significant milestones for Dubai’s real estate market, reflecting a robust surge in activity and a clear shift towards owner-occupancy. This underscores the growing appeal of off-plan properties, which are increasingly resonating with buyers. We’ve observed an uptick in buy-to-live transactions, evidenced by the increase in mortgage processing through our Mortgage Finder advisory service. In this vein, we further recognize the positive momentum in Abu Dhabi’s market, which further enriches the regional landscape. The Abu Dhabi Real Estate Centre’s newly launched Rental Index also promises greater transparency for tenants and landlords, supporting stable growth for property in the emirate," said Cherif Sleiman, Chief Revenue Officer at Property Finder.
Looking ahead to 2024, the Shaikhani Group anticipates growth in new property handovers, aligning with the continuous influx of expatriates to Dubai. While a slowdown in the rapid price increases observed since 2019 is expected, continued growth at more sustainable levels is forecasted, reflecting the evolving and maturing nature of Dubai's real estate market.
The Shaikhani Group remains a pivotal force in Dubai's real estate success, committed to identifying growth opportunities and contributing to the city's ongoing transformation. As a leader in project ideation and development, the group's diversified portfolio and forward-looking approach position it as a key player in shaping Dubai's real estate landscape in the years to come.
