Dubai Real Estate Market Insights: February 2024 Report

Market Overview:

• Property prices continue moderate growth, up 0.83% in February.
• Sales transactions hit a record high, increasing 30.4% year-on-year.
• Off-plan sales remain dominant, particularly in the apartment segment.
• Three new master communities expected in 2024, addressing villa/townhouse shortage.
• Mortgage activity slightly down, but loans for new purchases see rise.

Price Trends:

• Prices are expected to continue modest appreciation, reaching 5-8% annually.
• Current price per square foot sits at AED 1,294, near the September 2014 peak.

Sales Activity:

• February saw the highest ever sales volume for the month (11,913 transactions).
• Residential transactions (apartments, townhouses, villas) make up most sales (92.1%).
• Off-plan transactions hold a dominant market share (around 60%).

New Launches and Supply:

• Nearly 10,000 new off-plan units launched in February, mostly apartments.
• Emaar and DAMAC announce new master communities, expected to boost villa/townhouse supply.

Mortgages:

• Overall mortgage transactions decreased slightly (down 5%).
• Loans for new purchases increased (46.1% of activity).
• Mortgage activity expected to remain steady with potential future surge if interest rates drop.

Future Outlook:

• Optimistic outlook with continued property value growth and minimal bubble risk.
• Potential future oversupply could lead to price decline, but no immediate signs.
• Absorption rate remains strong, with both end-users and investors buying new units.
• Indicators to watch in coming months: slowing sales volume, slower unit absorption, and developer incentives.

Overall, the Dubai property market shows positive signs in February 2024. While price growth is moderate, sales activity remains strong, especially for off-plan properties. New developments are expected to address supply shortages, and the mortgage market is stable. However, potential future oversupply and market fluctuations are important considerations.