The off-plan real estate market in Dubai has set a new record in the second quarter of 2024, with 25,466 transactions amounting to over AED52 billion ($14.1 billion), according to a report by Betterhomes. This marks an 81 percent increase compared to the same period last year, reflecting the growing appeal of Dubai’s property market.
Market Highlights:
- Transaction Growth: Villas saw a 44 percent year-on-year rise in transactions, with a 76 percent increase in value. Off-plan apartments dominated the market with an 86 percent year-on-year increase in transactions.
- Top Areas: The top five areas for apartment and villa transactions were Jumeirah Village Circle, Mohammed Bin Rashid City, Business Bay, Ras Al Khor, and Dubai Hills Estate.
- Luxury Market: The luxury off-plan market remains robust, with properties over AED15 million leading in Palm Jumeirah (51 transactions), followed by Dubai Water Canal (28 transactions) and Dubai Healthcare City II (18 transactions).
Demand Drivers:
The surge in activity is attributed to Dubai’s growing appeal and a notable shortage of ready-to-move-in inventory. Developers have responded by launching over 200 residential projects in 2024, adding nearly 50,000 units to the off-plan market. Over 70 percent of new developments are located in designated freehold areas.
Buyer Trends:
- Villas: Properties priced between AED2 to 5 million account for 75 percent of villa sales, appealing to buyers seeking more space and features without entering the high-end market.
- Apartments: Properties under AED2 million dominate the off-plan apartment market, making up 71 percent of total transactions. This price range attracts middle-income earners, expatriates, and investors with lower capital.
Dubai continues to attract a diverse range of buyers, driving growth in the off-plan property sector and setting new records each quarter. As developers strive to meet the rising demand, the market sentiment remains heavily skewed towards off-plan projects.
