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Dubai real estate: Total sales transactions surge to record levels in Q1 2024

Dubai’s property market thrives in Q1 2024 with a 17% increase in total transactions

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The real estate market of Dubai had a strong year in 2023, with a total of 133,134 registered sales transactions, marking a 38% increase from the previous year. This surge was largely fuelled by the exceptional performance of off-plan transactions, highlighting a significant boost in investor confidence.

Moreover, in 2023, a total of 178 areas saw real estate transactions, with 55.2% of the total transactions being accounted for by 10 areas. Leading the pack was Al Barsha South Fourth, which contributed to 10.7% of the total transactions, followed by Business Bay at 7.7% and Marsa Dubai at almost 7.5%.

The existing/ready transactions in 2023 contributed to 48.34% of the total sales transactions compared to 55.26% in 2022. The off-plan transactions contributed to 51.7% of the total sales transactions compared to 44.7% in 2022.

Off-plan sales also witnessed a notable record by reaching 68,783 transactions in 2023 compared to 43,151 in 2022, recording around a 59.4% increase to be the highest performance for a year ever recorded in the off-plan market.

In 2023, a total of 45 areas saw off-plan transactions, with 70.4% of the total transactions being accounted for by 10 areas. Leading the pack was Al Barsha South Fourth, which contributed to 14.4% of the total transactions, followed by Al Merkadh at 11%, and Marsa Dubai with over 7.8%. Interestingly, there was a significant increase in demand out of the top areas, such as Madinat Dubai Almelaheyah which saw an almost 727% increase in transactions, as well as Al Barsha South Fifth with around 312% and Wadi Al Safa 3 with 103%.

So, did the momentum continue in the first quarter of 2024 as well? Market Watch digest report for Q1 2024 by Property Finder has some interesting revelations.

Total sales transaction

According to data from the Dubai Land Department (DLD), Dubai experienced a significant surge in total sales transactions in Q1 2024. The number of transactions recorded was the second highest transaction for the quarter ever recorded, with more than 36,000 transactions compared to 31,000 transactions in Q1 2023, reflecting a substantial increase of 17%.

Off-plan market

The off-plan market in Q1 2024 continued supporting the real estate market in Dubai. There were around 16,600 off-plan sales transactions compared to 16,000 transactions in Q1 2023, representing 46% of the total transaction volume compared to 52 % of the total transactions in Q1 2023. Consequently, the off-plan transactions recorded a slight year-on-year surge of 4 % in terms of volume. The off-plan sales transaction value in Q1 2024 reached AED 37,4 billion, contributing 32 % of the total sales transaction value, recording a 5 % increase compared to Q1 2023, when the total sales transaction value was AED 35.5 billion, contributing 40 % of the total value.

Existing/ready market

The existing/ready market registered almost 19,600 transactions in Q1 2024, increasing its market share to 54% of the total transactions compared to around 15,000 transactions, which contributed 48% of the total transactions in Q1 2023. This performance witnessed a notable volume growth of 30% compared to Q1 2023. By reaching AED 78.200 billion, the existing/ready transaction value in Q1 2024 contributed to 68% of the existing sales transaction value, compared to 60% in Q1 2023. Consequently, the existing/ready transaction value witnessed a significant increase of 46% compared to AED 53,600 billion in Q1 2023.