Dubai Commercial Real Estate Market Report - October 2024

21 Nov, 2024

Commercial Market Highlights - October 2024:

1) Market Growth

✅ Property prices increased by 1.73% month-on-month, reaching an average of AED 1,473 per sq ft.
✅ Sales transactions set an all-time record with 20,460 deals, marking a 13.4% increase from September.
✅ Year-on-year price growth stood at 17.22%, reflecting steady buyer confidence.

2) Commercial Property Transactions

✅ Office spaces, hotel apartments, and vacant land were the highest transacted commercial property types.
✅ Commercial property sales represented less than 5% of total transactions, as residential sales dominated the market.

3) Off-Plan and Resale Activity

✅ Off-plan sales accounted for 72.6% of total sales, with continued demand for properties under construction.
✅ Resales comprised 31.2% of the market, with a slight decrease in activity compared to the previous month.

4) Development and Supply

✅ A record-breaking 99,000 new residential units were launched year-to-date, with 15,000 units introduced in October alone.
✅ Over 250 additional projects are in planning, signaling continued supply growth through 2024 and into 2025.

5) Mortgage Market

✅ Mortgage activity reached an all-time high with 4,318 loans, indicating growing reliance on financing.
✅ Average loan value stood at AED 1.75 million with a loan-to-value ratio of 76.5%.

6) Price Tiers

✅ Properties in the AED 1–3 million range dominated, accounting for 52.3% of market share.
✅ Luxury properties priced over AED 10 million also saw growth, with 644 transactions recorded.

Short Outlook :

✔ The Dubai market is expected to sustain its growth trajectory with cautious optimism.
✔ Risks of oversupply loom, given the high number of upcoming units, making demand absorption critical for market stability.
✔ Commercial properties remain a niche but important segment, with targeted opportunities for office and mixed-use spaces.

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Dubai Commercial Real Estate Market Report - October 2024

21 Nov, 2024

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Dubai Commercial Real Estate Market Report - October 2024

21 Nov, 2024

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