Dubai Real Estate Market Set for Expansion with Three New Master Communities in 2024
New Master Communities: Three new master communities planned for Dubai in 2024, focusing on villas and townhouses.
Increased Supply: These projects aim to address the under-supply of villas and townhouses in the market.
Modest Price Growth: Dubai property prices rose 0.83% in February, continuing a trend of slowing appreciation.
Record Sales Volume: February saw the highest ever sales volume for the month at 11,913 transactions.
Apartment Dominance: Residential transactions were mostly apartments (92.1%), with strong and consistent demand.
Flat Villa/Townhouse Sales: Villa and townhouse sales are flat, likely due to supply constraints, not lack of buyer interest.
Off-Plan Market Share: Off-plan transactions hold a dominant 59.8% market share.
Resale Market: Resale transactions remained steady at 41.7% market share.
Mortgage Activity: Mortgage transactions decreased slightly (5%) in February.
New Purchases Drive Borrowing: New purchase money mortgages accounted for 46.1% of borrowing activity.
The Dubai real estate market is witnessing significant growth with the introduction of three new master communities slated for launch in 2024. Property Monitor, a premier market intelligence provider, highlights the developments including Emaar's The Heights Country Club and Grand Club Resort, along with a new community by Damac launching in May. Situated along the southwest areas near the E611 corridor, these projects are expected to address the under-supplied villa and townhouse segment, thereby supporting Dubai's real estate expansion.
February's preliminary figures revealed nearly 10,000 units introduced to the market, predominantly apartments. However, single-family homes, accounting for approximately 15% of the new offerings, are anticipated to relieve the existing supply constraints.
Dubai's property prices continued their upward trend with a 0.83 percent increase in February, a continuation of the growth observed in the preceding months. The Property Monitor Dynamic Price Index indicates that prices are nearing a 5 percent increase from the 2014 peak, with a yearly appreciation expected between 5 to 8 percent.
Sales transactions in February reached a new record for the month, with 11,913 sales, a 2.6 percent increase over the previous month. Residential transactions dominated the sales, making up 92.1 percent of the total. The report attributes the high volume of transactions to the sustained demand for off-plan properties, particularly apartments.
Off-plan transactions continue to dominate the market, representing 59.8 percent of sales. Meanwhile, resale transactions maintained a stable market share of 41.7 percent. Mortgage transactions saw a slight decline of 5 percent in February, with new purchase money mortgages making up 46.1 percent of the activity.
These developments underscore the robust demand for real estate in Dubai, especially for off-plan properties. The introduction of new master communities is a strategic move to cater to the growing demand for villas and townhouses, promising to fuel the next phase of growth in Dubai's real estate market.