The robust demand for off-plan properties in Dubai reflects the property market's enduring growth momentum, suggesting the continuation of this trend into the foreseeable future.
The off-plan real estate segment has played a significant role in boosting Dubai's property market, comprising 58% of total sales transactions and 50% of the overall transaction value in August. Year-on-year, off-plan property sales saw a remarkable increase of 63%, with 6,837 transactions in comparison to 4,189 in August 2022. Furthermore, the value of off-plan properties surged by nearly 103%, reaching Dh17 billion, substantially surpassing the Dh8.26 billion recorded in August 2022. Property Finder identified ten areas that contributed to nearly 65.3% of the total sales value and 53% of the total number of transactions in the off-plan market. These areas included well-established favorites such as Business Bay, Dubai Harbour, Dubai Creek Harbour, Jumeirah Lakes Towers, and Jumeirah Village Circle, along with newcomers like Sobha Heartland, Al Yufrah 1, Arjan, Jumeirah Village Triangle, and Madinat Al Mataar.
According to Betterhomes, the top five areas with the highest off-plan property transactions in September were Dubailand, Mohammed bin Rashid City, Jumeirah Village Circle, Business Bay, and Dubai Marina.
Cherif Sleiman, Chief Revenue Officer at Property Finder, expressed that the off-plan segment is currently experiencing an unprecedented surge. The local property market has undergone a renaissance in the post-pandemic period, with both apartments and villas witnessing substantial demand.
The consensus among industry players is that the off-plan property market will maintain its dominance in the local property market, despite a slowdown in the secondary market.
Driven by unprecedented demand, both public and private developers have been launching projects aggressively. In 2023, the emirate of Dubai alone has seen the launch of more than Dh110 billion worth of projects, including Dh73.4 billion for Emaar's 'The Oasis' and the Dh30-billion mixed-use desert oasis community project, 'Venice,' by Azizi Developments.
Private developer Danube Properties, for instance, launched five projects in 2023, with its Dh2.5 billion 'Oceanz' first tower selling out shortly after its launch. All projects launched this year by Danube Properties have been successfully sold out. Likewise, master developer Nakheel Properties sold out its first set of villas on the Palm Jebel Ali on the day of their launch.
An encouraging sign of sustainable demand is that most of the newly-launched projects, by both public and private developers, have been either fully or substantially sold out within a few weeks of their launch in 2023. This strong demand is attracting foreign developers to enter the local market, offering diverse property options to buyers. Several European developers from countries such as the UK, Italy, Switzerland, Turkey, and France have entered Dubai's residential property market over the past year.
Investing in off-plan properties is attractive for several reasons. Buyers can acquire properties at lower prices compared to completed units. Moreover, off-plan properties often come with flexible payment plans, which can be advantageous for investors. Exploring post-handover payment plans helps minimize the risk of delays, as the responsibility to complete the project on time rests with the developer, who receives a significant portion of the payment post-handover. However, it's important to understand each project's payment schedule, associated fees, and available financing options.