Dubai set to launch nearly 40,000 new off-plan units in the last 4 months of 2024

Dubai property market: A surge in new developments

Strong project pipeline and sales growth

The Dubai property market is enjoying a strong pipeline of new project launches, with approximately 200 additional projects in various stages of planning. Developers are keen to capitalize on the growing demand for off-plan properties, reflecting the city’s continued appeal to residents and investors.

Almost 86,000 new project launches occurred in the first eight months of 2024, with a total sales value of 213.7 billion dirhams. The amount puts the market on pace to top Dh272 billion, the sum from the previous year, according to the most recent asset watch report from Cavendish Maxwell.

Off-plan properties are in high demand

With the market expected to launch an additional 35,000 to 40,000 off-plan units, the high volume of new launches is expected to continue for the remainder of the year. Areas such as Dubai Islands, Jumeirah Garden City, Dubai Sea City, Motor City and Dubai Land Residence Complex are expected to witness significant growth, especially in the apartment segment. Additionally, single-family units including townhouses and villas in communities such as The Valley, The Acres, The Oasis and The Hyde Country Club are also in high demand.

Foreign Investment and Market Dynamics

In the past two years, many foreign developers have entered the Dubai market. Property prices and rental rates have risen as a result of the influx of new residents and investors, pushing the emirate’s population to approximately 3.781 million.

In August 2024, the volume of wholesale transactions registered a modest increase of 0.28%, reaching 16,145 transactions. This marks not only the highest volume for August, but also the second-highest monthly amount on record. Notably, in 2024, every month except April set a record for the respective month’s transaction volume.

Record costs and steady expansion

Dubai real estate costs kept rising, hitting an all-time high of Dh1,431 per square foot. This is a rise of 16.03% from the previous peak in September 2014 and an increase of 82.4% from the market’s lowest point in April 2009. In the absence of major geopolitical or economic upheavals, the state of the market points to continued development through 2024, according to an analysis by Cavendish Maxwell.

Year-on-year, property prices rose 17.7% in August, marking the 42nd consecutive month of price increases. Prices increased by 11.5% in August 2024 from 10.9% in August 2023.

Market confidence amid temporary mortgage slump

Despite a temporary slowdown in mortgage activity, a surge in off-plan sales has been a key driver of the market’s strong momentum.A high amount of transactions indicates consistent buyer confidence. According to John Jochinke, head of market intelligence and research at Cavendish Maxwell, the robust demand for new off-plan projects is primarily responsible for the property market’s ongoing notable price growth.

Property transactions between Oqood (off-plan registration) and title deed transactions made up the majority of Oqood registrations in August, making up 64.8% of all transactions. This is a 6.5% monthly increase.

Overall, the Dubai property market is poised for continued expansion and success, driven by a strong pipeline of new projects, demand for off-plan properties and strong sales activity. Being a global hotspot city for real estate investment, investors and developers are optimistic about the future.