Dubai real estate market: figures for May 2024
Another month of hyper growth for the Dubai real estate market! The market continues to move forward, reaching new heights in this historic month of May. Dubai Immo, your your French real estate agency in DubaiWe take a look at the key figures for the Dubai real estate market. In this article, you'll also find our analysis of the market's evolution, and the trend for the rest of 2024.
Booming number of transactions
The number of sales rose by +49.2% compared to May 2023, which until this year was the strongest May in history. With 17,539 sales, May 2024 was the strongest month in Dubai's history. In detail, sales ofapartments jumped by 56.8%, commercial premises by 36.2% and land by 229%. Villa sales were down -20%, due to a severe shortage of supply. Total sales rose by 33.8% to 45.8 billion dirhams, or 11.4 billion euros.
Prices still on the rise
The average price of an apartment has risen by 8.8%, to AED 1.3M, or €325,000. For villas, the increase is 10.9%, for an average price of AED 2.9M, or €725,000. For commercial premises, the increase is even greater, with an average price of over 49%, at AED 1.5M, or €375,000.
Rents continue to rise
It's becoming increasingly difficult to find a place to live in Dubai, as rents continue to rise. Demand is very strong, and property owners and investors are the main beneficiaries. The average rent for an apartment has risen by 25% since May 2023, while the average rent for a villa has risen by 8.4%. We note a sharp rise in rents in the Al Furjan district, where a 1-bedroom apartment rents for around AED 100k (€25,000) a year.
Off-plan purchases well ahead in May
The month of May was marked by a sharp disparity between the number of sales of off-plan and ready-to-let properties. In fact, off-plan sales accounted for around 70% of total sales, while ready-to-sell properties accounted for just 30%. This shows the continuing interest of investors, who continue to invest heavily in the Dubai real estate market.
Credit purchases still in the minority
In the month of May 2024, only 3,672 credit purchases were recorded by the Dubai Land Department. This represents 20.9% of total transactions. We remain in a market largely dominated by cash purchases, which is a very reassuring sign. The Dubai real estate market is impacted at the margin by interest rate rises. If interest rates fall, credit sales are bound to increase, which should help maintain a high level of transactions.
Dubai's most expensive apartments and villas
In May, the most expensive apartment in Dubai Marina was sold. A penthouse in the Jumeirah Gate tower sold for 20 million euros. The most expensive villa was sold on Palm Jumeirah, for close to 32 million euros.
Conclusion
As the figures show, Dubai's real estate market is in excellent shape. No other real estate market in the world can match this performance in 2024. Demand remains very strong, particularly from British, Chinese, Romanian, German, Italian and French investors. We're predicting a sharp increase in the population for the start of the 2024 school year, given the hundreds of applications we receive every month from future residents. If you're looking to invest in real estate in 2024, you'll need to navigate your way through the sometimes unsavory offers, and avoid a few pitfalls. We can help, so please don't hesitate to contact us.
Guillaume Giroux, Dubai Immo founder and real estate expert, Dubai, UAE
As founder of the Dubai Immo Group and a real estate investor, I bring you daily updates on the Dubai market. My aim is to provide you with all the keys you need to invest wisely and securely, by sharing my in-depth analysis and strategic advice.
