Dubai Off-Plan Market Insights: Sales Soar in Q3 2024

Market Overview

1 month ago

According to the Construction Week Report, The real estate sector of Dubai has posted record sales in the third quarter of 2024, with a total number of transactions of 50,439 with a total value of AED 142 billion.

This is a stark comparison to the previous peak in Q2 2024 where there was a 15% increase in volume and a 14.5% increase in value. New supply was also led by off-plan transactions, which accounted for 63% of all transactions, compared to 55% in Q3 2023.

The demand for off-plan properties has also increased with a year-on-year rise of about 58.7% leading to 31,800 transactions. It also surpassed the preceding highest peak mark set in 2009 with 26,629 transactions, which is a 19.4% enhancement over the year.

Comparing Q3 2024 and Q3 2023 transactions

The aggregated size of off-plan transactions of Q3 2024 was up by 42.3% (AED 67.45 billion) when compared to Q3 2023 (AED 47.39 billion).

The value of transactions increased by 20.8 percent vs 2023 and was equal to AED 74.53 billion, compared to AED 61.7 billion in Q3 2023. This was 52% of the total sales transaction values, against 57% in Q3 2023.

Why Off-Plan Surging in Q3 2024

Appreciation: The property prices have gone up by about 42.3%.
High Returns: Off-plan properties in Dubai are highly profitable investments and are popular among local and foreign citizens.
Quality Developments: The new off-plan properties offer better finish and design than those already in the market thus increasing their demand.

Why Are People Investing In Off-Plan Properties?

Lower Prices: Off-plan projects in Dubai are also more affordable than the completed ones.
Flexible Payments: Developers present attractive payment schemes.
Incentives: Dubai has put in place measures that enhance investors’ confidence.

Top 12 Popular Communities

1. Jumeirah Village Circle

With mid-income houses and family facilities, the client populations made it the ideal location for investors targeting a growing rental unit market.

Transactions: 3,140 units

2. Dubai Hills Estate

The strategic location and the added features that include parks, schools, and golf courses made the perfect choice.

Transactions: 1,900 units

3. Sobha Hartland 2

Its proximity to Downtown Dubai and Meydan added to its appeal, positioning it as a peaceful yet well-connected option.

Transactions: 2,066 units

4. Al Yufrah 1

The area’s affordability and easy access to major highways and Dubai’s business centers made it an attractive choice.

Transactions: 1,250 units

5. Business Bay

Attractive infrastructure developments and its propensity in proximity to Downtown Dubai made it attractive to the working class.

Transactions: 1,389 units

6. Dubai Marina

Potential buyers and investors from other countries preferred its luxury high rises, water front marina, and lively entertainment facilities.

Transactions: 980 units

7. Dubai Hills Estate

Landmarked buildings continued to be popular investment destinations that investors looked to purchase with potential for gains in value.

Transactions: 1,150 units

8. Palm Jumeirah

Buyers were attracted to its resort-style units of customized beachfront villas and luxury apartments in the secure island neighborhood.

Transactions: 384 units

9. Dubai Creek Harbour

Investors’ interest was further spurred by the fact it was still rapidly emerging as a business hub meaning the returns were an indication of long term value.

Transactions: 1,405 units

10. Damac Lagoons

It comprised themed clusters, numerous amenities for families which, alongside an abundance of activities centered around water made it attractive to those who sought affordable luxury.

Transactions: 3,800 units

11. Madinat Al Mataar

The area’s blend of affordability and potential for long-term growth made it an ideal choice for new homeowners and savvy investors.

Transactions: 292 units

12. Al Barsha South Fourth

Its inclusion in the property market was as a result of it offering large homes with easy access to Centrality.

Transactions: 1,744 units

Wrapping up!

Dubai’s steady demand for real estate investment is evident in the off-plan market performance in Q3 2024. Such extreme sales volumes have the potential to attract more attention.