Dubai, UAE – Dubai’s real estate market reached a new peak in July, with sales hitting an all-time high of AED50.1 billion ($13.6 billion). Although the market continued to grow, the year-on-year increase slowed to 33% from 53% in June, reflecting a high base effect from the same period in 2023.
Apartment sales, which accounted for nearly 45% of all transactions, surged by 62% year-on-year, with approximately 70% of these being off-plan sales. The villa segment also saw a shift towards the off-plan market in the past two months, resulting in a 9.9% year-on-year growth overall.
Plot sales, despite reaching their highest level this year at AED12.2 billion ($3.3 billion), experienced a 6.2% year-on-year decline due to last year’s strong performance. The Jumeirah Village Circle, Business Bay, and Dubai Creek Harbour emerged as the top areas of demand during the month.
Mortgage activity also picked up in July, with the value of mortgages increasing by 47% year-on-year to AED14.1 billion ($3.8 billion), compared to a 7.8% rise in June. The ongoing sales momentum in Dubai’s property market has been bolstered by rising capital flows, investments in high-end luxury units and branded residences, as well as continued robust growth in the non-oil economy.
However, experts anticipate a potential cooling of the market over the coming year. Factors such as high, though possibly declining, interest rates, along with an expected increase in supply—around 35,000 new units by the end of the year—could moderate price growth.