Dubai’s off-plan property market reached a new peak in the second quarter of 2024. Q2 recorded 25,466 transactions worth over AED 52 billion. This marks an 81% increase from the Q2 of 2023. This highlights the strong growth and rising demand in the market.
DUBAI'S OFF-PLAN PROPERTY MARKET SOARS
Off-plan apartments have dominated the Dubai Real Estate market. Showing an 86% year-on-year increase in transactions, buyers aren’t letting off and Dubai off-plan projects are reaching new markets. With flexible payment plans, 0% tax and lower prices compared to ready properties developers are captivating the international real estate market driving investors to new projects with incentives like waiving service charges for a few years or even absorbing the cost of the 4% DLD registration fees.
A RISING DEMAND FOR VILLAS
Villa transactions climbed by 44% year-on-year compared to 2023, with their value increasing by 76%. This displays a growing preference for spacious and luxurious living spaces. The demand for villas has largely been pushed by the desire for more spacious homes with private outdoor areas.
The rise in activity continues alongside Dubai’s growing appeal, with each quarter breaking previous records the market has shifted to off-plan transactions through continued launches of new projects to meet the increasing demand and influx of new expats. Dubai, the first emirate to allow property ownership for non-Emiratis, now has the highest future residential supply in designated freehold areas. Over 70% of new developments are in these free zones. The market is heavily focused on off-plan projects due to an increasing shortage of ready-to-move-in homes and predominantly because of the D33 Agenda and the Urban 2040 Masterplan, in which the population is anticipated to double.
Dubai’s off-plan property market is attracting a wide range of buyers from all across the world. New residents with families are targeting villas, where 75% of sales are for properties priced between 2 to 5 million AED. This price range appeals to those looking for more space and features without rolling into the high-end luxury market.
Singles, young couples and international investors are dominating the off-plan apartment market, where 71% of transactions are for properties under 2 million AED. This price range is popular with middle-income earners, expatriates, and investors who prefer affordable and accessible options for leasing further down the line.
BEST PERFORMING AREAS
Developers have launched over 200 residential projects in 2024, adding nearly 50,000 units to the off-plan market. The luxury off-plan market for properties worth over AED 15 million also continues to grow and remain strong.
● Palm Jumeirah leads with 51 transactions
● Dubai Water Canal with 28 transactions
● Dubai Healthcare City II with 18 transactions
The top five areas for apartment and villa transactions in Q2 2024 were
● Jumeirah Village Circle
● Mohammed Bin Rashid City
● Business Bay
● Ras Al Khor
● Dubai Hills Estate
The strong performance of the off-plan property market reflects the city’s strategic vision and effective policies to attract Dubai real estate investments. The government’s efforts to enhance infrastructure, economic pillars and trade routes coupled with high standards of living and safety, make Dubai an appealing destination for investors and residents alike.
The successful Expo 2020 played a big role in boosting investor confidence and interest in Dubai’s real estate market, it showcased the city’s ability to host world-class events and reinforced its position as a global business and tourism hub.
We all say it’s the best time to buy off-plan and ready-to-move-in properties in Dubai, however we couldn’t be more correct. With an ever-increasing trajectory of growth and development, there is no slowing down in city of the future. If you are looking for where to invest or buy property, CIELO is dedicated to guiding you in finding property that perfectly meets your needs and requirements.