Dive Into the Details About the Statistics of Dubai’s Off-plan Property

Dive Into the Details About the Statistics of Dubai’s Off-plan Property
Statistics of Dubai Off plan Property

Get a few details of Dubai’s off-plan property statistics to make proper decisions on investment. Also, a few factors conducive to such a boom in the real estate sector in Dubai

The Dubai real estate industry had an incredible year in 2022. According to the DLD, the volume and value of completed homes sold in Dubai saw a 50% increase in sales, driven by solid demand from domestic and foreign investors. A comparable pattern was noted for off-plan properties as well. The popularity and pricing trends for impending constructions in Dubai are described in detail in Bayut’s Dubai off-plan property market Report.

The Area of Development of Off-plan Project in Dubai

According to information from the Dubai Land Department, 35,370 off-plan sales transactions of AED 71.1 billion were documented in 2022. According to statistics, there were 47.9% more off-plan transactions in Dubai in 2022, and the sale price jumped by 60.3%.

The selling of off-plan residences in Dubai made up most of this volume. According to trends for 2022, the following regions saw the most significant number of off-plan apartment transactions in Dubai:

  • Downtown Dubai
  • The Town Square
  • Dubai South
  • Jumeirah Village

You also need to know that in Q3 2023, off-plan purchases accounted for 65% of the overall sales value, or 13.62 billion AED, and made up the majority of property sales. 61% of the entire volume of property sales was ascribed to off-plan deals.

Reason Behind Investors Are Flocking Up Together for Off-Plan Project in Dubai

According to the review of reputed real estate agents in Dubai, real estate investors are drawn to Dubai, which has attracted interest from both domestic and foreign buyers since the historic ruling of 2002 permitting foreigners to acquire freehold real estate. Investment activity in Dubai’s real estate market has increased.

Off-plan properties stand out among the many investment possibilities available in Dubai’s real estate market, known for innovation, expansion, and plenty of opportunity. Purchasing off-plan real estate in Dubai is an alluring option that offers investors the chance to create long-term value in addition to significant returns and strategic advantages.

Flexible Payments Come with Cost Effectiveness

Several advantages exist while comparing the cost-effectiveness of investing in off-plan properties to buying completed structures. Although they are still in the pre-construction stage, these properties usually have more flexible payment plans and are priced more reasonably. Off-plan investments appeal to seasoned investors and those just getting started in the market because of their affordability and payment flexibility.

In that respect, you need to know that the real estate market saw a YoY fall in sales transactions of -6.17% in the first quarter of 2024; about 2,145 sales transactions were registered during this time, compared to 2,286 in the first quarter of 2023. So, the downfall subsided, and there has been a surge of investment in off-plan property in Dubai for the second time.

Dubai developers regularly unveil new developments, leading to aggressive pricing policies and various payment choices. These alternatives frequently involve instalment payment plans, such as the “1% per month” instalment model, which can continue for up to 40% after the handover. In the off-plan real estate market, these monetary incentives give purchasers a competitive edge.

Provides Surety of Rental Returns

Because of the steady influx of foreigners into the United Arab Emirates, there is a high demand for housing, which makes rental income a significant inducement to buy real estate. Off-plan properties, such as villas or apartments, usually draw renters because of their freshness and modern facilities.

Law protects Investors

Although risks are associated with investing in off-plan real estate, the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA) have put several safeguards in place to keep buyers safe. For example, developers can only access funds for off-plan properties after meeting certain project milestones. The payments for off-plan properties must be made at banks that DLD has approved.

Furthermore, developers must offer sizeable financial guarantees to support purchasers’ confidence regarding the security and dependability of their investments. Thus, with the rise of a 17% YoY surge in Dubai’s off-plan market, you can be sure about the legal support you can get.

Diverse Projects Come with Ample Opportunities

Dubai has many off-plan projects to suit different tastes and requirements. The variety of project types and locations, from the vibrant Downtown Dubai to the up-and-coming neighbourhoods like The Valley and Dubai Hills Estate, offers investors a wide range of options.

In Dubai, numerous off-plan investment choices are available in various neighbourhoods, each with unique attractions and possible advantages for those interested in investigating them.

Higher Rental Yields

The current mortgage rate environment has changed, making it less viable to buy ready-to-move-in residences for investment purposes. Even with higher rental yields, mortgage servicing costs have increased, meaning net yields are lower when all expenses are considered. As a result, investing in ready-to-move-in properties no longer makes sense financially.

One clear benefit of off-plan investments is that they allow investors to direct cash toward properties still for sale at their original asking rates. The impact of high lending rates is lessened by the flexibility of payment arrangements, providing more financial management flexibility.

Dubai’s increasing population is a significant factor in the demand for residential real estate. The UAE government has implemented several programmes to encourage Dubai’s population expansion by drawing a regular stream of new residents to the city.

Amazingly, occupancy rates for properties in Dubai are at all-time highs, with freehold properties seeing occupancy rates of 95% and leasehold properties seeing occupancy rates of 97% concurrently. This pattern suggests that there will always be a need for rental homes.

Dubai Off Plan Properties & Projects- Falcon Premier Real Estate Company in UAE

The Conclusion

For those looking to profit from Dubai’s thriving real estate market, purchasing off-plan real estate offers several more enticing benefits. Off-plan houses provide a strategic path for wealth building and portfolio expansion, from taking advantage of pre-construction rates and flexible payment plans to customisation choices and high return potential.

With the help of reputed real estate agents, investors can fully realise the benefits of off-plan property investments and start a fulfilling road towards financial prosperity in Dubai’s booming real estate market by comprehending the benefits and doing an extensive study.

Company Bio

Falcon Premier is one of Dubai’s leading real estate companies, specializing in luxurious residences. We enjoy an outstanding reputation for offering distinctive services to discerning clients. The best commercial and residential buildings are represented in our portfolio, ensuring the highest standards of quality and value.

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