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The off-plan property market has witnessed an impressive 35% surge in demand in the last three months. The off-plan real estate market in Dubai is experiencing a notable surge in demand, with a 35% increase in the past three months. Experts at Betterhomes emphasize the positive trajectory of the off-plan market in Dubai. However, they also acknowledge that real estate markets can be influenced by various factors that may lead to changing trends over time.
The surge in demand for off-plan properties represents a remarkable 35% increase compared to the same period in the previous year. Now making up 61% of Dubai’s overall real estate market.
During the second quarter of this year, Dubai witnessed off-plan transactions totaling Dh34 billion, marking a 750% increase from the Dh4 billion transactions recorded in the same period in 2020. This substantial growth amounts to an additional Dh30 billion in transactions over three years, according to a report by Zazen Properties.
A recent report by Property Monitor reveals that as of August this year, off-plan sales account for 64.7% of the market. With the total number of sales transactions reached 12,134. A record high for the month of August, showing an 8.1% month-on-month increase.
Experts in the property market suggest that the current environment is favorable for investing in off-plan properties for several reasons. Firstly, rising mortgage rates have made investing in completed properties less viable for returns. Despite increased rental yields, the higher costs of servicing a mortgage have reduced net yields.
Secondly, off-plan investments provide a unique advantage, allowing investors to allocate funds to properties that are still available at their original prices. The flexible payment plans associated with off-plan properties help mitigate the impact of high lending rates and offer greater financial flexibility.
Lastly, Dubai’s population growth is a significant driver of demand for residential properties, making off-plan investments a promising choice for potential appreciation in value upon completion. Purchasing off-plan properties typically involves lower initial costs compared to completed units, and the flexible payment plans offered can be beneficial for investors.
Dubai’s off-plan real estate market is thriving due to increasing demand, attractive investment opportunities, and the region’s sustained development and population growth.
