For the second summer in a row, Dubai property prices continued to grow, increasing by 1.22% in July. The total number of sales transactions reached 16,113, marking the highest ever for July. Residential transactions accounted for the majority, making up 93.4% of sales.
Off-plan OQOOD transactions rose to 9,393, up 17.1% from June, and expanded their market share to 58.3%. Title Deed sales also increased, rising by 7.2%, now representing 41.7% of all transactions. Resale transactions grew slightly by 0.5% from the previous month, totaling 6,612, which contributed to a market share of 41%.
The introduction of approximately 9,000 new off-plan units in July boosted the market, adding to a year-to-date total of around 68,000 units spread across more than 220 projects. This pace suggests that 2024 will surpass last year’s total of 96,000 units.
Emaar remained the leader in the off-plan segment, holding a dominant 23% market share with 2,077 transactions. Danube followed with 6.9%, while Sobha secured a 6.5% share. Dubai Hills Estate ranked as the most popular master development for initial sales, followed by Jumeirah Village Circle and Business Bay.
Mortgage loan activity surged by 20.2% in July, with 4,033 loans recorded. Loans for new property purchases made up 53% of all loans, an increase of 4.8% from the previous month, with the average loan amount being AED 1.83 million and a loan-to-value ratio of 76.7%. Loans for refinancing and equity release also increased, with their share growing by 4.3% to 33.8%.
As we enter the second half of 2024, the market is expected to maintain its upward momentum with moderate price increases and sustained high transaction volumes. The gap between off-plan and completed property sales is likely to widen, driven by the strong pipeline of off-plan projects. High demand from both investors and end-users is keeping absorption and sales rates strong, making a significant market shift unlikely in the near future. However, over time, supply and demand may begin to realign.
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Source: propertymonitor.com