Monthly Market Report July 2024

The July 2024 Monthly Market Report reveals a dynamic and record-breaking period for Dubai's real estate market, characterized by unprecedented sales and mortgage loan volumes. The report highlights a continuing trend of strong off-plan sales, which dominate the market, alongside a moderate increase in property prices. Despite the typically slow summer season, the market has defied expectations with robust activity, suggesting sustained momentum as the year progresses.

Key Highlights:

1. Record Sales and Mortgage Volumes: July saw record highs in both sales and mortgage transactions, with significant growth compared to previous months and years.

2. Property Price Growth: Property prices increased by 1.22% month-on-month, reaching AED 1,397 per square foot, surpassing the previous peak of September 2014 by 13.2%.

3. Transaction Volume Increase: Sales transactions rose by 12.8% MoM and 43.5% YoY, with residential properties dominating at 93.4% of total transactions.

4. Emaar's Dominance: Emaar recorded over 2,000 sales in July, maintaining its strong position in the market through off-plan sales.

5. Off-Plan Market Surge: Off-plan transactions increased by 17.1% MoM, capturing a 58.3% market share, and potentially 67.1% after adjustments.

6. Resales Growth: Resales activity increased slightly by 0.5% MoM, with off-plan resales representing a growing share, indicating speculative interest.

7. New Off-Plan Units: Nearly 9,000 new off-plan units were introduced in July, contributing to a total of approximately 68,000 units across 220 projects this year.

8. High Mortgage Activity: Mortgage transactions rose by 20.2% MoM, with purchase money mortgages leading the activity, and an expectation of consistent volumes ahead.

9. Anticipated Interest Rate Impact: A potential decrease in interest rates is expected to spur further refinancing activities, possibly leading to even higher mortgage volumes.

10. Future Market Outlook: The market is anticipated to continue its upward trajectory with high transaction volumes and moderate price growth, though a future shift in supply and demand balance is inevitable.

In conclusion, the Dubai real estate market is experiencing an exceptional period of growth and activity, defying seasonal trends and setting new records. The strong performance, particularly in the off-plan sector, is expected to persist into the second half of 2024. However, the report cautions that while the market remains robust, the current momentum cannot last indefinitely, and a rebalancing of supply and demand may eventually occur.