Why are people selling their off-plan properties before they will be ready? This question is in the minds of many in Dubai, where a surge of off-plan property resales is taking place as units move toward finalization. In the nine months of 2024 alone, Dubai’s real estate region noticed over 125,000 residential transactions, a huge growth from around 93,000 during the same period in 2023. Off-plan profits were important in this boom, making up more than half of all property transactions.

Dubai: Why Are More People Selling Off-Plan Properties A Year Ahead Of Completion?

Rapid Increase In Off-Plan Sales

Dubai has become a focal point for real estate investment, especially in off-plan properties. In 2024, the city witnessed a 36% increase in residential transactions compared to the previous year. Off-plan property sales, in particular, rose by over 50% within this period, making up the majority of sales activity. This growth shows the strong appeal of off-plan properties, particularly as investors seek to enter the market before projects are completed, hoping for a favorable resale.

Most off-plan properties sold are set to be completed within 12 months, attracting buyers who initially intended to occupy these homes themselves. The growing trend of off-plan sales reflects the high potential for these properties to appreciate before they are handed over, making resale a lucrative option for early buyers.  One of the primary reasons driving the resale of off-plan properties is the shortage of ready-to-move-in properties. As developers work to meet the ever-growing demand, the gap between supply and demand remains substantial. 

In the third quarter of 2024, Dubai saw over 22,500 new off-plan units launched. Off-plan transactions continue to thrive in this environment, with more buyers leaning towards the investment potential of properties that are still under construction. This trend points to a market where high demand drives the appeal of properties under development, often making them more desirable than already available units.  The affordability of off-plan properties compared to completed units is a significant factor in their popularity. 

Off-plan properties generally come with more flexible payment plans and lower initial costs. This setup attracts both local and international investors who want to enter the Dubai property market without the immediate financial burden of paying the full property price upfront. The ability to make payments in stages during the construction period lowers the barrier to entry, allowing a broader audience to participate in the market. A key motivator for reselling off-plan properties before completion is the rising value of these units as they near readiness. 

Properties within a year of handover typically see an increase in value, largely due to the demand for new, ready-to-move-in homes. When buyers choose to sell at this stage, they often benefit from higher prices than they initially paid, making it a strategic decision for those seeking quicker returns on their investments.

Also Read: Dubai Real Estate Records Unprecedented $4.8 Billion Transactions In One Week.

New Units Ready For Occupancy Increase Value

When off-plan properties finally reach completion, they are valued even higher due to their immediate move-in potential. The lack of ready properties in Dubai means that new, completed units often attract considerable interest, with buyers eager to avoid long wait times. As such, off-plan units that have just been completed or are nearing completion often sell quickly and at premium prices. While some investors in previous years focused on short-term property flips, today’s market operates with more structured and controlled strategies. 

Unlike the speculative flips of the early 2000s, current investors approach off-plan sales with a long-term perspective and often look to sell units closer to completion to achieve maximum value. This approach aligns with more mature market conditions, as investors today are generally more informed and focused on sustainable returns rather than quick turnovers. Developers have introduced policies to prevent premature flips, requiring significant payment completion before allowing resale. For example, some properties require buyers to pay up to 50% of the total amount before they can sell the unit, reducing the likelihood of speculative selling. 

This shift in strategy shows a more stable, regulated market, helping to prevent the formation of bubbles and making the investment landscape more reliable for long-term gains. 

Outlook For Dubai’s Off-Plan Resale Market

The future of Dubai’s off-plan resale market appears robust, with high investor interest and a growing number of properties nearing completion. With thousands of new off-plan units launched each quarter, the market is expected to see sustained activity, driven by both local and international buyers. While developers work to meet demand, the limited availability of completed properties suggests that off-plan sales will remain a major part of the market. Investors who hold onto their off-plan properties until near completion can look forward to favorable returns, as the market shows no signs of slowing. 

As Dubai’s real estate sector continues to expand, off-plan properties will likely remain a focal point, providing opportunities for both seasoned investors and first-time buyers seeking a foothold in this dynamic market. The balance of demand, flexible financing, and high resale values ensures that off-plan properties will continue to shape Dubai’s real estate landscape well into the future. 

Arshad Darbar’s Thoughts

Arshad Darbar, a seasoned real estate expert with years of experience in Dubai’s market, sees the trend of off-plan resales as a testament to the sector’s dynamic growth and evolving strategies among investors. He notes that off-plan properties nearing completion attract strong interest because they offer buyers both appreciation potential and near-immediate occupancy. According to Darbar, many end-users initially purchase these properties intending to live in them, but the current demand and rising values make reselling highly appealing. 

This flexibility, he believes, reflects the market’s maturity and is also influenced by factors like flexible payment plans, a shortage of ready homes, and the growing appeal of Dubai’s property market to both local and international buyers. Darbar adds that this trend benefits investors who understand the value of holding properties until near completion when demand and prices peak. He sees Dubai’s off-plan market remaining robust, fueled by both high demand and strategic investor decisions, positioning it as a key segment of the city’s real estate landscape for the foreseeable future.

Conclusion

Dubai’s off-plan property resale market continues to grow due to rising demand, attractive payment plans, and high resale values close to project completion. Limited ready property supply further drives investors and end-users to capitalize on resale opportunities. As more off-plan projects are near completion, Dubai’s real estate market remains robust, making off-plan investments a valuable option for those seeking strong returns in a high-demand environment.