July 2024 has marked another significant month for Dubai's real estate market, showcasing remarkable resilience and growth across various sectors. The market's dynamics continue to be shaped by increasing demand, strategic developments, and investor confidence, solidifying Dubai's position as a global property hotspot.
Market Metrics Overview
The Dubai real estate market demonstrated robust performance in July 2024, with 19,120 residential property sales recorded, amounting to an impressive AED 48.44 billion in sales volume. This represents a substantial increase compared to the previous month, reflecting the market's growing momentum. The average price per square foot for residential property sales also saw an uptick, reaching AED 1,614.63, further emphasizing the strong demand for quality real estate.
The primary market continued to attract significant attention, with 9,531 transactions generating a sales volume of AED 20.19 billion. The average price per square foot in this segment stood at AED 1,883.30, highlighting that premium investors are willing to pay for new developments.
In the rental market, the average rent price for renewed residential rentals was AED 65,248, with an average residential rent price per square foot of AED 60.49. New rental contracts averaged at AED 75,489 - a gap of AED 10,241 that is continuing to close with prices for renewed contracts ruthlessly catching up to new contracts since October 2023, when the gap peaked at AED 19,644.
These figures suggest a steady demand for rental properties, driven by the growing population, which reached 3,754,051 at the end of the month, an increase of more than 0.38% in a single month.
Top 5 Most Expensive Property Sales
July witnessed some high-profile transactions that underscore Dubai's appeal to ultra-high-net-worth individuals. The most expensive sale was a villa in Palm Jumeirah, sold for a staggering AED 102.5 million. This was followed by two luxury units in ORLA Infinity by OMNIYAT, also located in Palm Jumeirah, sold for AED 76.66 million and AED 75.75 million, respectively. These transactions highlight the continued demand for prime waterfront properties in Dubai's most prestigious area.
Areas Generating the Most Revenue
Dubai Hills emerged as the top revenue-generating area in July 2024, with a total sales volume of AED 2.43 billion across 955 transactions. This was closely followed by The Lagoons (Dubai Creek area), which generated AED 1.87 billion in sales from 716 transactions. These areas are at the forefront of Dubai's strategic development, offering a blend of luxury, convenience, and future growth potential.
Other notable areas include Business Bay, with a sales volume of AED 1.60 billion from 649 transactions, and Jumeirah Village Circle, which saw 1,326 sales contributing to a total volume of AED 1.45 billion. These areas continue to attract both investors and end-users, driven by their strategic locations and diverse offerings.
Areas with the Biggest Change in Sales
As crazy as it may sound, a single offplan project in Dubai Hills was largely responsible for an astonishing 2,884.38% increase in sold properties in the area, jumping from 32 sales in June to 955 sales in July. According to official data from the Dubai Land Department, 915 are attributed to Palace Residences in Dubai Hills by Emaar. Flying somewhat under the radar, Emaar sold AED 2,335,557,777 worth of offplan units in July 2024 there. This is a powerful display of how one single project can shake up the market and create anomalies in the numbers.
Far after Dubai Hills, Remraam saw the second highest relative change in sales, with "only" a 267.44% increase from 43 to 158 sells.
Conclusion
July 2024 has been a landmark month for Dubai's real estate market, characterized by strong sales figures, record-breaking transactions, and notable growth in key areas. The market's resilience, coupled with strategic developments and investor confidence, continues to drive demand across the board. As Dubai's population and economic landscape expand, the real estate market is expected to maintain its upward trajectory, offering lucrative opportunities for investors and developers alike. Offplan properties in particular are standing out in their performance.