Off-plan property sales are driving the flourishing real estate sector in Dubai.
Data collected from the property markets expressed excess demand for the off-plan properties by over 50% in Q3, 2024. This has actually gone up, contrary to trends in some other markets, proving the endless ability for growth and recovery in the Dubai real estate market.
There is a cocktail of reasons as to why off-plan sales have recorded steady growth; A sound economy, higher investments, and more people shifting their cycles to Dubai for working and residing purposes resulting in relatively high property demand.
Research carried out using relevant data from Bayut, a leading real estate company in Dubai, indicated that Dubai off-plan property sales rose 52% higher than at the same time last year. Such growth makes Q3 record-breaking as many real estate agencies in Dubai come up with high off-plan transaction figures.
According to Taimur Khan Head of Research MEA at JLL while talking about this said:
“The UAE real estate market demonstrates remarkable resilience, achieving robust growth across all sectors despite a challenging global outlook. Investor confidence remains strong in Dubai, and this upward trajectory is expected to continue, driven by strategic government initiatives and the ongoing development of world-class destinations.”
“We are seeing a clear flight-to-quality trend, with prime assets commanding premium prices. In Q4 2024 and beyond, we anticipate sustained growth with opportunities for both local and international stakeholders.”
Off-plan properties therefore cover situations where properties have not been built yet but investors buy them with the developer’s assurance that they will be built at some point in the future. Where supply is constrained as is the case with properties in Dubai, buyers looking forward to investing in a home or any property of their choice opt for off-plan properties due to limited choices available in the market.
In addition, Dubai’s government policies that encouraged foreigners to invest in their country and assured the stability of the property market have also contributed to this growth. Such measures include visa extensions for investors and a new option of 100% FDI in sectors allowed in the free trade agreements.
But while the off-plan property remains popular among buyers, the experts advise potential customers to be cautious. Thus the off-plan properties are seen by sellers as having a high probability of future increased demand, and sometimes prices can get very high and overly ambitious and this type of property can represent more risk if the market were to turn.
Thus, MAP Real Estate, a leading real estate agency in Dubai suggests that any prospective buyer should prepare his/her checklist better knowing the developers and their history and also the feasibility of the project that the off-plan property is a part of. Furthermore, off-plan purchase contracts must be scrutinized to the letter to determine any penalty or condition to do with the buyer’s rights.
The most trending now off-plan purchases include affordable homes in communities including Town Square, Dubai Hills Estate, and Arabian Ranches. These projects are especially significant since they have amenities and services, both for commercial and residential use, and affordably-priced payment structures.
Overall, an increase in off-plan property sales in the real estate of Dubai expects a bright future for the industry in the third quarter of 2024. The reason for the enhanced demand for properties for sale in Dubai can be attributed to the ever-growing economy and a thriving investors’ market. Nevertheless, buyers need to be very careful and conduct thorough research before investing in any off-plan purchase so as to minimize state-advantageous claims.
With Dubai remaining a dynamic city deep in transition, it is logical to presume that real estate will remain one of the key economic forces in the development of the city with many promoting the region for investors from around the world.
