By volume, apartments make up 63.7% of the new inventory, while villas and townhouses account for 22.8% and 13.5%, respectively. As Dubai’s real estate industry expands after the pandemic, new off-plan launches and sales are on the rise and hit a record high in November.
According to Property Monitor’s latest November report, new off-plan development project launches reached a record monthly high in November, adding a further 7,161 units to the market for sale at an anticipated combined gross sales value of Dh28.2 billion.
The study noted that apartments represent 63.7 percent by volume of this new inventory while villas and townhouses represent 22.8 percent and 13.5 percent, respectively. However, year-to-date new project launches have exceeded just over 44,000 units and Dh132.5 billion in aggregate sales value.
Property launches in Dubai declined after the establishment of a real estate committee in September 2019 to ensure a balance between supply and demand in the property market. Off-plan launches have increased, of late, after the market absorbed the oversupply after the pandemic. Dubai property market demand had grown substantially due to the successful handling of the pandemic.
“We remain positive on the health of the Dubai market moving into 2023 and predict that growth will continue, the lessons of the past market cycles will need to stay at the forefront of decision-makers across developers, investors, and consumers,” said Zhann Jochinke, chief operating officer, property monitor.
“The big gains are probably behind us for the foreseeable future and some months of price stability look in prospect with small gains and losses evening out as we get into 2023,” he said. November’s transaction volumes stood at 10,188, increasing significantly by 18.1 percent month-on-month and registered as the highest November ever and sixth highest for any month on record.
The study found that the split between off-plan (Oqood) and completed property transactions reversed the trend for the first time in five months in November and was in favor of the latter, with title deed registrations accounting for 54.8 percent of all transactions, up 7.9 percent month-on-month.
In November, Emaar Properties dominated the off-plan market with the bulk of developers’ Oqood registrations, taking a commanding market share of 15.8 percent. They recorded just under 900 transactions spread across a myriad of their projects. DAMAC Properties finished in second place with 13.8% of all off-plan registrations, followed by Nakheel with a 13.2% market share. Palm Beach Towers in Palm Jumeirah and Jebel Ali Townhouses in Jebel Ali Village saw the most activity.
