Dubai’s off-plan Market set a peak within the 2nd quarter of 2024. With 25,466 transactions totaling over AED 52 billion ($14.1 billion), this represents an 81 percent increase in evaluation for the same length of last year. What factors contributed to this increase? This article breaks down the numbers and provides insights into the driving forces behind the incredible overall market performance.

Dubai Real Estate: Off-Plan Property Market Hits $14.1bn In Q2 2024

In Q2 2024, Dubai’s off-plan property market experienced a significant increase in activity. There were 25,466 transactions, resulting in a total value of AED52 billion. This is an 81 percent increase compared to the same period in the previous year. The market’s growth is noteworthy, as each quarter continues to surpass previous records.

The reasons behind this record-breaking performance are multifaceted. Firstly, Dubai’s strategic location and world-class infrastructure continue to attract investors from around the globe. The city’s reputation as a safe and stable investment destination further bolsters confidence among buyers. Additionally, the government’s proactive measures to support the real estate sector, such as introducing investor-friendly policies and offering various incentives, have played a crucial role in driving market growth.

Villas And Apartments Lead The Way

The off-plan market has seen remarkable growth in both villas and apartments. Villas experienced a 44 percent year-on-year rise in transactions and a 76 percent increase in value. This surge can be attributed to the growing demand for spacious and luxurious living spaces. Buyers are increasingly looking for properties that offer a blend of comfort, privacy, and high-end amenities. 

The availability of larger plots and the option to customize villas according to individual preferences have further fueled this trend. Off-plan apartments dominated the market with an 86 percent year-on-year increase in transactions. This segment has attracted a diverse range of buyers, including young professionals, expatriates, and investors. The affordability and flexibility offered by off-plan apartments make them an attractive option for those looking to enter the real estate market. 

Developers have also been focusing on creating innovative and sustainable apartment projects that cater to the evolving needs of modern urban living.

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Dubai’s Growing Appeal

Dubai’s appeal as a prime location for real estate investment continues to grow. The market has shifted towards off-plan transactions as developers aim to meet rising demand through new project launches. Each quarter brings new transaction records, reflecting the city’s increasing attractiveness to both local and international buyers. Dubai was the first emirate to offer property ownership to non-Emiratis. 

It now has the highest future residential supply in designated freehold areas. Over 70 percent of new developments are located in these zones. This ensures a steady supply of new properties to meet the growing demand. The availability of a wide range of properties in different price segments and locations has contributed to the market’s growth. 

Buyers have the flexibility to choose from various types of properties, including apartments, villas, and townhouses. This diverse offering caters to different preferences and budgets, attracting a broad spectrum of buyers. The high future residential supply also provides opportunities for investors looking to capitalize on the growing demand. With a steady stream of new projects in the pipeline, investors can expect a continuous supply of attractive investment options. 

This helps maintain a healthy balance between demand and supply, preventing excessive price hikes and ensuring long-term market stability. The market sentiment is heavily skewed towards off-plan projects. This is driven by a notable shortage of ready-to-move-in inventory. Buyers are increasingly looking towards off-plan properties as they offer more options and flexibility in terms of customization and payment plans.

New Residential Projects

Developers have launched over 200 residential projects in 2024, adding nearly 50,000 units to the off-plan market. This surge in new developments is aimed at meeting the increasing demand from buyers looking for new and modern homes. The luxury off-plan market, for properties worth over AED15 million, remains strong. Palm Jumeirah leads with 51 transactions, followed by Dubai Water Canal and Dubai Healthcare City II with 28 and 18 transactions, respectively. 

This indicates a robust demand for high-end properties in prime locations. The top five areas for apartment and villa transactions in Q2 2024 were Jumeirah Village Circle, Muhammad Bin Rashid City, Business Bay, Ras Al Khor, and Dubai Hills Estate. These areas are popular due to their strategic locations, modern amenities, and attractive investment opportunities.

Arshad Darbar’s Thoughts

Arshad Darbar, a seasoned real estate expert, views the surge in Dubai’s off-plan property market as a clear indicator of the city’s growing appeal and investment potential. He believes the 81 percent year-on-year increase in transactions is a testament to Dubai’s robust economic environment and strategic planning. According to Darbar, the significant rise in both villas and off-plan apartments reflects a shift in buyer preferences towards new, modern properties that offer greater customization and flexible payment options.

Darbar emphasizes that the record-breaking AED52 billion in transactions for Q2 2024 underscores the confidence investors and homebuyers have in Dubai’s real estate market. He points out that the substantial number of new projects launched this year, adding nearly 50,000 units to the market, demonstrates developers’ commitment to meeting the high demand. The strong performance of luxury off-plan properties, particularly in prime locations like Palm Jumeirah and Dubai Water Canal, also highlights the city’s appeal to high-net-worth individuals.

Darbar concludes that Dubai’s strategic approach to expanding its real estate offerings, coupled with its status as a global hub, positions it for continued growth and investment attractiveness. He is optimistic about the future of Dubai’s real estate market, especially in the off-plan segment.

Conclusion

Dubai’s off-plan property market has shown remarkable growth in Q2 2024, setting new records in both transactions and value. The shift towards off-plan properties is driven by the city’s growing appeal, high future residential supply, and a notable shortage of ready-to-move-in inventory. With new projects continually being launched, the market is well-positioned to continue its upward trajectory.