Dubai's Off-Plan Property Market Set to Expand with 40,000 New Units in Late 2024
Dubai anticipates the launch of nearly 40,000 new off-plan units in the last four months of 2024.
The number of new units launched in 2024 is expected to reach approximately 126,000.
Dubai's property market will see nearly 200 additional projects in the pipeline by various developers.
Nearly 86,000 units were launched as new projects in the first eight months of 2024, with a sales value of Dh213.7 billion.
Sales figures for 2024 are on track to surpass 2023's total of Dh272 billion.
Significant growth is expected across multiple segments
The market attracts foreign developers due to the high demand for off-plan properties.
Property prices have reached an all-time high of Dh1,431 per square foot, a 16.03% increase from the peak in September 2014.
Dubai's property market saw the highest-ever August volume of sales transactions with 16,145 transactions.
Dubai’s property prices have increased by 17.7% year-on-year as of August 2024, marking 42 consecutive increases.
Dubai's off-plan property market is poised for significant expansion in the closing months of 2024, with nearly 40,000 new units expected to be launched. This surge in new projects will bring the total for the year to an impressive 126,000 units, reflecting the robust health and vibrant activity within the market.
According to the latest Property Monitor report by Cavendish Maxwell, approximately 86,000 units were launched in the first eight months of the year, amassing a total sales value of Dh213.7 billion. These figures indicate that the market is on a solid trajectory to exceed the Dh272 billion recorded in 2023, signalling strong investor confidence and a bullish outlook for the real estate sector in Dubai.
The report highlights that nearly 200 additional projects are in the pipeline, spanning various pricing segments and communities. Notably, there is a growing emphasis on developing residential apartments in emerging locales such as Dubai Islands, Jumeirah Garden City, Dubai Maritime City, Motor City, and Dubai Land Residence Complex. The market for single-family units, including townhouses and villas, is also experiencing significant expansion in areas like The Valley, The Acres, The Oasis, and The Height Country Club.
Over the past two years, the influx of foreign developers underscores Dubai's appeal as a lucrative market for off-plan properties, fueled by unprecedented demand from residents and investors. This demand is reflected in the escalating property prices and rentals, compounded by Dubai's growing population, which now stands at 3.781 million.
August 2024 marked a milestone with 16,145 sales transactions, the highest ever for the month and the second-highest overall. This continued trend of record-setting months underscores sustained buyer confidence despite fluctuations in mortgage activity. Property prices have reached an all-time high of Dh1,431 per square foot, an 82.4% increase from the market trough in April 2009 and a 16.03% increase from the previous peak in September 2014.
Zhann Jochinke, director of market intelligence and research at Cavendish Maxwell, remarked on the robust momentum within Dubai's property market. "The surge in off-plan project sales is a significant driver of the market, with high transaction volumes reflecting sustained buyer confidence," he said.
With property prices showing a year-on-year increase of 17.7% as of August and 42 consecutive months of increases, the outlook for Dubai’s property market remains exceptionally positive. Without significant economic or geopolitical disruptions, the market conditions are set to foster continued growth throughout the year.