Transaction volumes continue to soar and reach new records

Dubai Residential Market Notes

Published: July 1, 2024

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Dubai’s residential market continues to showcase exceptionally strong levels of demand.
In May 2024, the total volume of transactions stood at 15,766, this is the highest monthly figure on record to date, marking an increase of 44.2% compared to the year prior.
Over this period, secondary market transactions rose by 5.7%, reaching a total of 5,065, and off-plan properties increased by 74.3%, reaching 10,701.
In the year to date to May 2024, the total volume of sales transactions reached 62,180, registering a marked increase of 384.3% from the 2019 comparable figure when this total was just 12,838, while outperforming the 2023 record-high by 30.0%.
This year-on-year growth has been supported by a 42.6% increase in off-plan sales and an 11.3% rise in secondary market sales.

Higher demand is underpinning strong absorption levels
Much has been said about the influx of new launches and the potential dampening impact that this may have on prices, where supply may again start to outweigh demand.
However, the absorption of new stock sits at markedly high levels, where our headline analysis shows at least 70.0% of units which were launched since 2022, have been sold to date, due to lags in data, we anticipated that this number is materially higher.
More so, within Dubai’s core and established residential areas, this figure is, on average, well above 80.0%.
Anecdotally, we are seeing that a considerable portion of this demand in the off-plan market is originating from owner-occupiers, therefore, in the longer term, we expect that the increase in supply will provide some relief to the rental market, but for sales prices, it is unlikely to create downward pressure.

H&S Towers

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