The truth behind Dubai's real estate market that will blow your mind

Join CEO, Carl Allsopp and Managing Director, Marc Walters on this week's episode of Taking Care of Business, as they break down August's market report, sharing insights and trends that kept Dubai’s real estate hot this summer.

And here are their expert predictions for the last quarter of the year…

Reflecting on the summer months, and the Allsopp & Allsopp market report

As we approach the final quarter of the year, it's amazing to think that Christmas is just four months away - Just like how time flies, so does the dynamism of the Dubai property market. Marc dives into the data from August sales and his insights on the market.

1. Sales value: The total sales in August 2024 were a staggering AED 37.3 billion, marking a 33% increase compared to August 2023.

2. Transactions: A total of 14,992 properties were transacted in August, a 36% increase from the previous year. Did you know, that 66.9% of these were off-plan purchases?!

Top performing areas

Carl and Marc highlight the top transacting areas, both for sales and rentals:

• Villas and Townhouses: Ream, Town Square, and Jumeirah Golf Estates.
• Apartments: Downtown Dubai, Dubai Marina, and Palm Jumeirah.

Rental market

The rental market sees a 43% increase in viewings, reflecting high demand fueled by people moving into the country and seeking flexible payment plans.

Is now the time to buy?

Carl Allsopp asks Marc the burning question, “Is it a good time to buy, or are we at the top of the market?” And Marc shares his answer as to why, it is the best time to be a buyer.

• The market today is markedly different from the downturns of 2008 and 2014.
• Vast improvements in lifestyle and infrastructure.
• Consistent influx of new residents and businesses, means a consistent rise in demand
• Record high transaction values across all price ranges.

Addressing first-time buyers

First-time buyers often find it challenging to enter the market due to rising prices and the high cost of living. Marc asks Carl to share his insights on how first-time buyers can navigate the market safely and smoothly. Carl shares two options:

1. Longer saving periods: It now takes a dual-income family about 3.5 years to save for a deposit on a home under two million dirhams. Carl suggests starting saving sooner rather than later for a home.

2. Consider suburban areas: More affordable options are often found further out from the city’s core, he suggests going outwards and exploring newer areas with more affordability.

Predictions for Q4

Marc shares his predictions for the remainder of the year:

1. Steady price increases: Expect single-digit growth in prices per square foot.
2. High transaction volume: Historically, October to December is a busy time for the market.

Wrapping up, Carl and Marc believe the Dubai property market’s momentum will continue into 2025. The fundamentals are strong, and the city remains an attractive destination for both living and investment. They advise not to hesitate in making property decisions, as the prices are likely to keep climbing.

Want to continue hearing more about the August market snapshot for Dubai’s property market? Check out our report here and tune into Taking Care of Business!