The demand for off-plan properties in Dubai has been rising rapidly due to the lack of affordable inventory for sale and the soaring rental prices in the market. Residents and investors are increasingly opting for off-plan projects as they offer lower prices and higher returns compared to other major cities worldwide. Expatriate residents are particularly drawn to off-plan units to bypass the competitive rental market.
According to experts, investor activity is heavily focused on off-plan projects, while residents are split between off-plan and ready properties. The white-hot rental market has seen prices more than double in some communities post-pandemic, further fueling the demand for off-plan properties. Developers are offering attractive payment plans for off-plan projects, with some offering up to eight years after the handover, though banks only finance ready properties.
In recent months, there has been a significant increase in off-plan transactions, with over 10,000 Oqood transactions recorded in May alone. Dubai has witnessed the launch of several mega projects worth billions of dirhams to meet the growing demand for off-plan properties. Developers such as Emaar Properties, Azizi Developments, Nakheel, Aldar, Damac Properties, Danube Properties, and others have launched numerous projects to cater to the market demand.
Property Monitor has reported a record surge in the launch of new off-plan development projects, with over 15,500 off-plan units added to the market for sale. The combined gross sales value of these units is estimated to be Dh41.4 billion. The demand for off-plan projects is reflected across various property types, including apartments, villas, and townhouses. In particular, there has been a notable increase in off-plan villa transactions in Dubai, driven by a preference for larger living spaces post-Covid-19.
Key areas leading the surge in villa transactions include Haven, Tilal Al Ghaf, Dubai South, Reportage Village, and MBR City. Developers are responding to this growing demand by launching new projects that cater to different buyer preferences. The market is expected to continue its upward trajectory, offering lucrative opportunities for both buyers and developers alike. The surge in off-plan transactions indicates a healthy demand for urban living and spacious, luxurious homes in Dubai.
