The Dubai real estate market recorded AED46 billion in total sales transactions in October, representing a 4 per cent increase from September, according to data from the Dubai Land Department (DLD).
The secondary market, which refers to resale properties, saw its total sales value rise by 20 per cent and transaction volume increase by 13 per cent month-on-month.
The secondary market accounted for 43 per cent of the total market value in October, despite representing 31 per cent of total transactions.
High-value transactions continue across Dubai luxury properties
“For 17 years, Allsopp & Allsopp has had a specialised focus in the secondary market – long before Dubai became one of the most sought-after investment destinations in the world. Resale is where we built our business, and it remains the core of what we do. What weโre seeing today is a confident, mature market with real depth: real end users, real long-term investors, and tangible value appreciation across all established communities. Itโs a truly exciting time for property ownership here,” Lewis Allsopp, Chairman, Allsopp & Allsopp said in a statement.
This indicates that buyers and investors are prioritising completed properties that offer immediate benefits such as rental income or the ability to move in without delay.
The average secondary market sales price stands at AED3.5 million. The AED1 to 3 million bracket expanded by 18 per cent month-on-month and now represents 45 per cent of all transactions.
Sales in the AED0 to 1 million segment increased by 58 per cent, suggesting that entry into the market is more accessible than some international buyers may expect.
October saw several transactions at the top end of the market. Allsopp & Allsopp completed the sale of a Signature Villa on Palm Jumeirah for AED80 million, a villa in Sanctuary Falls, Jumeirah Golf Estates, for AED32 million, and a property in Lime Tree Valley for AED25.75 million.
Year-on-year, villa sales prices are up 13 per cent and apartment prices have risen 7 per cent. The average price per square foot increased by 12 per cent year-on-year, according to DLD data. Communities including Jumeirah Village Circle, Business Bay, and Jumeirah Village Triangle continue to attract both sales and rental activity.
Villa and Townhouse sales volume increases 25% month-on-month
Villa and townhouse total sales transaction volume increased by 25 per cent month-on-month, according to DLD data. The average villa and townhouse price has increased by 57 per cent year-on-year, according to Allsopp & Allsopp data.
New rental contracts decreased by 6 per cent and renewals fell by 15 per cent month-on-month. However, rental prices continued to rise, with apartment rents increasing by 8 per cent and villa and townhouse rents rising by 17 per cent.
The increase in villa and townhouse rents is driven by limited supply in family communities and the continued arrival of expatriate families.
The combination of rising rents and increased resale activity suggests that tenants are choosing to purchase resale properties rather than continue renting.
