Dubai's Off-Plan Sector Commands USD 4.5 Billion in June 2024

Whitewill, the international luxury real estate agency for developers and partners that operates across the UK, USA, and UAE markets, has released its market overview report analysing off-plan sales activity across the apartment, villa, and townhouse market in Dubai during the month of June 2024. Tracking various residential communities, the report shows a strong off-plan market performance for the leading real estate broker, Whitewill, which has been instrumental in Dubai's property market.

Data suggests the off-plan market is consistently dominating, with significant sales volumes and values indicating strong buyer interest in new developments. Off-plan sales accounted for the majority (58.6%) of all real estate deals with 7,899 transactions worth AED 16,667,161,076 (~USD 4,538,369,251).

Compared to the previous month, real estate prices were dynamic in June 2024. Notably, apartment areas such as Al Khail Heights (6.73%) and Al Barari (5.86%) experienced substantial growth while Business Bay saw a decrease (1.71%). In the villas and townhouses segment, Al Barari led with a price increase (5.09%), while Jumeirah Islands experienced a decline of (2.56%).

Olga Pankina, Chief Operations Officer at Whitewill Dubai, said: “Our real estate data highlights a dynamic and evolving market in Dubai. The strong demand for luxury properties in high-end areas indicates Dubai's ongoing appeal to affluent buyers. At the same time, more affordable districts continue to attract a wide range of buyers, ensuring a balanced market. This dual trend reflects Dubai's ability to cater to diverse buyer preferences, from high-net-worth individuals to budget-conscious investors. Moving forward, we can expect both luxury and budget-friendly sectors to thrive, driven by economic resilience and varied buyer interests.”

Apartments

In June 2024, a total of 7,021 apartments were purchased. The top 5 areas by price per sq. ft for apartments were Jumeirah Bay Island (AED 12,712), Palm Jumeirah (AED 5,414), Dubai Harbour (AED 4,245), Downtown Dubai (AED 3,856), and Madinat Jumeirah Living (AED 2,885).

In terms of market value, the highest property prices were recorded in Jumeirah Bay Island, where apartments in the Bulgari Lighthouse project were sold for AED 148 million. Palm Jumeirah had an average property price of AED 29,343,479, followed by Jumeirah Beach Residence (AED 23,804,000), Dubai Water Canal (AED 16,029,000), and Downtown (AED 9,699,000). Motor City emerged as the most affordable area regarding property prices, with an average price of AED 587,961.

The top 5 districts by volume of sales transactions were Business Bay (776), Mohammed Bin Rashid City (707), Jumeirah Village Circle (696), Arjan (404), and Dubai Residence Complex (308). In June 2024, 24.9% of apartment buyers purchased properties from AED 1,000,000 to AED 1,500,000. Most buyers preferred 1-bedroom apartments (42.1%), followed by studios (27.2%) and 2-bedroom apartments (25%). 

Villas and Townhouses

In June 2024 the total number of villas and townhouses purchased was 877. The top 5 areas by price per sq. ft for villas and townhouses were Mohammed Bin Rashid City (AED 1,868), Tilal Al Ghaf (AED 1,718), Jumeirah Golf Estates (AED 1,665), Nad Al Sheba (AED 1,462), and Al Barari (AED 1,313). The most expensive area for villas and townhouses was Mohammed Bin Rashid City (AED 11,356,830), followed by Jumeirah Golf Estates (AED 7,845,750), Tilal Al Ghaf (AED 7,633,381), Al Barari (AED 6,379,744), and Nad Al Sheba (AED 4,573,796).

The top 5 areas by volume of sales transactions for villas and townhouses were Dubai South (281), Haven (170), Nad Al Sheba (88), Arabian Ranches 3 (61), and Reportage Village (56). The majority of buyers (54.6%) preferred villas and townhouses priced between AED 3,000,000 and AED 5,000,000.  Luxury properties worth over 10 million were bought by only 1.9% of buyers. The most popular choices were 4-bedroom units (42.9%) and 3-bedroom units (42.2%). 

The Top Performing Areas in Dubai

Apartments in Palm Jumeirah’s cost per sq ft. was AED 5,414, and the average property price was AED 29,343,479, indicating its status as a luxury area with steady transaction volumes. Jumeirah Village Circle (JVC) came up as an affordable area with a cost per sq. ft of AED 1,267. JVC recorded 696 transactions, making it a popular choice among buyers.

Villas and townhouses in Mohammed Bin Rashid City, with a price per sq. ft of AED 1,868 and a total purchase price of AED 11,356,830, highlight the district's leadership in luxury villa and townhouse sales. Al Barari showed significant growth in price per sq. ft (AED 1,313) and a total purchase price of AED 6,379,744. Nad Al Sheba was positioned as a premium district with a price per sq. ft of AED 1,462,  a total purchase price of AED 4,573,796, and a notable sales volume of 88 transactions.

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