Are you searching to buy a new property in Dubai? You would possibly want to keep in mind the records about the off-plan market. In the very last 4 months of 2024, nearly 40,000 new off-plan units are anticipated to launch. This growth is part of a strong pipeline of new projects that purpose to meet the growing demand within the Dubai real estate market. This article provides you with all the essential details about this anticipated launch of off-plan properties.
Dubai: Nearly 40,000 New Off-Plan Units Likely To Be Launched In Last Four Months Of 2024
A Strong Pipeline Of New Projects
The Dubai property market has been very active in 2024. In the first eight months of the year, there were nearly 86,000 new project launches. These launches had an impressive sales value of Dh213.7 billion. This figure indicates a thriving real estate market that is on track to surpass last year’s total of Dh272 billion. There are nearly 200 additional projects currently in the planning phase. This suggests that the trend of high levels of new launches will continue throughout the rest of the year. Developers are keen to meet the demand from buyers who are interested in off-plan properties. The upcoming 35,000 to 40,000 units will include a variety of property types and price ranges, catering to different buyers’ needs.
Expected Growth In Various Areas
The expected growth in new development activity will cover various communities and pricing segments. Areas like Dubai Islands, Jumeirah Garden City, Dubai Maritime City, Motor City, and Dubai Land Residence Complex are likely to see many new apartments. Additionally, single-family homes, such as townhouses and villas, are expected in The Valley, The Acres, The Oasis, and The Height Country Club. This growth indicates that developers are responding to the needs of families and individuals looking for more space and modern amenities.
Rising Demand From Foreign Developers
In recent years, many foreign developers have entered the Dubai market. This influx is a response to the unprecedented demand for off-plan properties from both residents and investors. As Dubai’s population continues to grow, reaching 3.781 million, the demand for housing has surged. This growing population has led to rising prices and rental rates in the city, creating more opportunities for developers and investors.
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Increase In Sales Transactions
In August 2024, the total volume of sales transactions in Dubai increased by 0.28 percent. The total reached 16,145 transactions, marking the highest-ever August volume. This also made it the second-highest month for transactions overall. The market has shown a trend of record-setting months. Every month in 2024, except for April, has achieved its highest-ever transaction volume for that month. This steady increase in sales transactions reflects a healthy and active property market. Buyers are continuing to show interest in purchasing properties, which is a positive sign for the overall economy.
Climbing Property Prices
Alongside rising transaction volumes, property prices in Dubai have reached new heights. The average price now stands at Dh1,431 per square foot. This marks an increase of 82.4 percent compared to the market low in April 2009. Furthermore, prices are now 16.03 percent higher than the peak observed in September 2014. The current market conditions are favorable for continued price growth throughout 2024. Year-on-year prices have increased by 17.7 percent in August, marking 42 consecutive months of increases. In addition, prices have risen by 11.5 percent on a year-to-date basis compared to 10.9 percent in August 2023.
Strong Market Momentum
The Dubai property market is showing strong momentum with significant price growth. The rise in off-plan project sales is a key driver of this growth. High transaction volumes reflect the confidence buyers have in the market, even though there has been a temporary dip in mortgage activity. The sales transaction volumes in August reached 16,145, a slight increase of 0.2 percent compared to July. During this month, the transactions were split between Oqood and Title Deed property transactions. Oqood registrations made up 64.8 percent of all transactions, reflecting an increase of 6.5 percent month-on-month.
Arshad Darbar’s Thoughts
Arshad Darbar emphasizes that the anticipated launch of nearly 40,000 new off-plan units in Dubai’s real estate market is a clear sign of robust growth and resilience. With nearly 200 additional projects in the pipeline, he believes this influx will cater to the diverse needs of buyers looking for modern housing options. The rise in new developments aligns well with the growing population of Dubai, which now exceeds 3.7 million residents. Darbar notes that the steady increase in sales transactions and property prices reflects a strong buyer confidence, despite recent fluctuations in mortgage activity.
He highlights that the growing interest from foreign developers further underscores the market’s appeal, as they seek to capitalize on the demand for off-plan properties. Additionally, Darbar points out that this trend presents valuable opportunities for both investors and homebuyers. The expected price increases in various segments and communities suggest a favorable environment for those looking to enter the market. Overall, Darbar sees this surge in new project launches as a positive development, reinforcing Dubai’s position as a leading global real estate hub.
Conclusion
Dubai’s property market is set to see nearly 40,000 new off-plan units launched in the last four months of 2024. With a strong pipeline of nearly 200 additional projects, developers are actively responding to the increasing demand for housing in the emirate. The growth in various areas and the influx of foreign developers highlight the confidence in Dubai’s real estate sector. Rising sales transactions and climbing property prices indicate a thriving market that offers numerous opportunities for buyers and investors alike.
As the property market continues to grow, it will be essential for potential buyers to stay informed about new projects and developments. The increasing activity in the off-plan sector suggests that now may be an excellent time to consider purchasing a new property in Dubai.
