Have you ever wondered which sort of property investment is superb for you in Dubai? With many alternatives available, it is tough to decide between off-plan and read properties. Recently, Dubai’s real estate market reached new heights, achieving record transactions and sales. This article provides you with all the essential information about the numbers behind these successes and highlights the differences between off-plan and ready properties.
Off-Plan Properties Or Ready Properties – Which Investments Fueled $8.7bn In Sales In Dubai?
Record-Breaking Transactions In Dubai’s Real Estate Market
In the third quarter of 2024, Dubai’s real estate sector achieved an all-time high in transactions. The total number of property transactions reached 50,439, amounting to a value of AED 142 billion (around $38.7 billion). This was a significant increase compared to the previous quarter, showing a 15 percent rise in volume and a 14.5 percent increase in value. Off-plan properties played a major role in this growth. Off-plan transactions accounted for 63 percent of the total sales, compared to 55 percent during the same period in 2023. This shift highlights a growing trend towards off-plan properties as buyers seek new developments.
Growth In Off-Plan Property Sales
Off-plan sales in Dubai showed strong demand, with a remarkable year-on-year increase of 58.7 percent. This resulted in approximately 31,800 off-plan transactions, making it the highest volume for a quarter ever recorded in the city. In terms of monetary value, off-plan sales reached AED 67.45 billion (around $18.4 billion), up from AED 47.39 billion (about $12.9 billion) in Q3 2023. This marked a 42.3 percent increase in value, clearly indicating a strong preference for off-plan properties among investors.
Notably, the off-plan property market has surpassed its previous peak from 2009, with 31,800 transactions compared to 26,629 in that year. This reflects a 19.4 percent increase, showcasing the resilience and attractiveness of off-plan investments in Dubai.
Performance Of Ready Properties
While off-plan properties dominated the market, ready properties also showed positive growth. The number of transactions for ready properties rose by about 13.3 percent year-on-year, with around 18,639 transactions compared to 16,450 in Q3 2023. Ready properties accounted for 37 percent of the total transactions during this quarter. In terms of value, ready properties also saw a notable increase, with transaction values climbing 20.8 percent year-on-year.
The total value for ready properties reached AED 74.53 billion (approximately $20.3 billion), compared to AED 61.7 billion (around $16.8 billion) in Q3 2023. This contributed to 52 percent of the total sales transaction values, slightly down from 57 percent in the same period last year.
Shifts In Buyer Preferences
The significant rise in off-plan property sales indicates a shift in buyer preferences. More buyers are now leaning towards purchasing properties that are not yet built. This trend shows that many investors see the long-term potential in off-plan developments. The demand for off-plan properties is also linked to the overall appeal of buying new homes. Many buyers prefer the chance to customize their homes and take advantage of the modern amenities that new developments offer.
Additionally, the rise in mortgage processing for off-plan properties highlights the increasing interest in these investments. Many buyers are seeking financial solutions to support their property purchases, reflecting a growing confidence in the market.
Economic Impact on the Real Estate Market
The growth in Dubai’s real estate market has significantly boosted the economy, creating a ripple effect across various sectors. An increase in real estate transactions has led to the creation of numerous jobs, particularly in construction, finance, and retail. As more properties are built and sold, the demand for services and products in these industries continues to rise, further driving economic activity. This expansion in the real estate market not only fuels job creation but also enhances investor confidence, attracting both local and international investors looking for diverse opportunities.
The high demand for off-plan and ready properties reflects the market’s resilience and potential for sustained growth. Additionally, a thriving real estate sector contributes to the overall stability of the economy, as it encourages investments in infrastructure and services, creating a more balanced and robust economic landscape. As Dubai continues to develop, the positive impact of the real estate market will likely be felt across the entire economy.
Arshad Darbar’s Thoughts
Arshad Darbar views the recent surge in Dubai’s real estate market as a clear indication of the sector’s resilience and growth potential. He notes that the significant increase in off-plan property transactions reflects changing buyer preferences. Many investors are now more inclined to consider off-plan options due to the attractive pricing and the chance to customize their new homes. This trend suggests a shift towards long-term investment strategies, which could further stabilize the market.
Darbar emphasizes that the growth in both off-plan and ready properties signifies a robust economy and increasing buyer confidence. He believes the record sales figures demonstrate a healthy balance between new developments and established properties, catering to diverse investor needs. Moreover, Darbar highlights the importance of ongoing initiatives, which aim to enhance the market’s appeal through strategic investments. Overall, he is optimistic about the future of Dubai’s real estate sector, suggesting that these trends will continue to attract both local and international investors looking for profitable opportunities.
Conclusion
As Dubai’s real estate market continues to evolve, understanding the differences between off-plan and ready properties is essential for investors. The significant growth in off-plan transactions indicates a shift in buyer preferences, favoring new developments that offer customization and modern features. On the other hand, ready properties still play a vital role in the market, offering immediate occupancy and established communities. Each investment type has its benefits and considerations, and potential buyers should weigh their options carefully.
Looking ahead, the Dubai real estate market is poised for continued growth, with various opportunities for investors. Whether considering off-plan or ready properties, being informed about market trends and buyer preferences is crucial for making successful investments.
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