According to experts in the real estate industry, Dubai’s off-plan market is showing positive signs, driven by increased demand from both end-users and investors.
There has been a noticeable uptick in interest from foreign and local property buyers, with figures showing a rise ranging from 40% to 60%. Betterhomes analysts highlighted this trend, noting that while the current trajectory looks promising for the off-plan market in Dubai, it’s essential to remain aware of various factors that could influence market dynamics over time.
Over the past three months, the off-plan property market has witnessed a significant surge of 35% in demand compared to the same period last year. Off-plan transactions now command a substantial 61% share of Dubai’s overall real estate market, reflecting robust activity in this sector.
The surge in off-plan sales is evident in the numbers, with Dubai recording Dh34 billion in off-plan sales during the second quarter of this year, a staggering 750% increase from the Dh4 billion registered in the corresponding period in 2020. Zazen Properties’ research also indicates a substantial rise in transactions, totaling around Dh30 billion over the past three years.
Recent data from Property Monitor’s survey in August reveals that off-plan sales dominated the market, accounting for 64.7% of total sales. Moreover, August witnessed a record-breaking total of 12,134 sales transactions, marking an 8.1% increase month-over-month.
Experts suggest that the current market presents an opportune moment for investing in off-plan properties for several reasons. Firstly, rising mortgage rates have made purchasing completed properties for investment less economically viable. Secondly, off-plan investments offer the advantage of buying properties at original prices, coupled with flexible payment plans that help mitigate the impact of high lending rates. Thirdly, Dubai’s population growth continues to drive demand for residential properties, further enhancing the appeal of off-plan investments.
The analysis by Betterhomes underscores the potential for off-plan properties to appreciate in value over time, given Dubai’s ongoing growth and increasing population. Buying off-plan properties allows investors to acquire units at lower prices compared to completed ones, with the added benefit of flexible payment plans, which are advantageous for investors seeking greater financial adaptability.
