UAE: Dubai's off-plan Market booms

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Demand continues to outstrip supply, and the market's exceptional performance promises a positive future outlook.

2024-08-26T16:53:00+05:00

Dubai:  The Dubai off-plan property market has experienced a remarkable surge in the first half of 2024, driven by strong demand, high rental yields, and investor confidence.

Based on Bayut’s H1 2024 findings, the sales transactions in the off-plan market reached an impressive AED 103.8 billion during the period, outpacing previous records. The thriving rental market in Dubai has also contributed to the market's success, offering investors attractive rental yields on their investment properties.

Off-Plan Investments

Based on consumer interest recorded on Bayut, popular areas for affordable off-plan properties include Dubai Investments Park (DIP), Dubailand, Dubai Residence Complex, and Dubai South. Verdana 2 in DIP emerged as a top choice for budget-conscious investors, with average prices just above AED 500k.

For mid-tier off-plan properties, Jumeirah Village Circle (JVC), Arjan, and Jumeirah Lake Towers (JLT) were popular among apartment seekers, while Al Furjan, Arabian Ranches 3, and Nad Al Sheba 1 attracted villa buyers.

In the luxury segment, high-rise off-plan projects in Business Bay, Downtown Dubai, and Palm Jumeirah dominated buyer interest.

Market dynamics

The high demand for off-plan properties and limited supply have heightened competition in Dubai's real estate sector. Investors are drawn to prime locations for their potential returns and strategic benefits. Innovations like AI-driven platforms such as TruEstimateTM are transforming investment strategies by providing enhanced market transparency.

Additionally, proactive government policies aimed at protecting investor interests and promoting sustainable growth have strengthened investor confidence.

Positive outlook 

Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, expressed optimism about the future of Dubai's off-plan market: "The market's performance is a testament to Dubai's ongoing infrastructural developments and the government's ability to navigate global economic shifts.

With the influx of new residents and the launch of approximately 48,000 new units in the first half of 2024, the demand for off-plan properties remains strong."

Khan emphasized the importance of strategic initiatives like TruEstimateTM in empowering investors with real-time data and market insights. He concluded that Dubai's innovative efforts to create value for investors will likely lead to sustained success in the off-plan market for the long term.

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