Dubai’s off-plan property market soared to new heights in Q2 of 2024, with 25,466 property transactions totaling over AED 52 billion. This impressive activity marks an 81% increase compared to the same period last year, underscoring robust demand from both end-users and investors. Such growth cements Dubai’s status as a premier real estate destination.

Villas experienced a 44% year-on-year rise in transactions and a 76% increase in value. Off-plan apartments led the market with an 86% year-on-year increase in transactions, as buyers favoured new developments over existing properties.

There is a positive shift towards off-plan transactions driven by developers launching new projects to meet the rising demand. Dubai, the first emirate to allow non-Emiratis property ownership, now boasts the highest future residential supply in designated freehold areas, with over 70% of new developments situated in these zones. This ongoing development is reshaping the city’s landscape, with innovative projects sprouting across the emirate.

The market sentiment strongly favours off-plan projects due to a significant shortage of ready-to-move-in inventory. Developers are responding by launching new projects, showcasing their confidence in the market’s continued growth and their ability to fulfill future demand. In 2024 alone, over 200 residential projects were launched, adding nearly 50,000 units to the off-plan market. The luxury off-plan segment, featuring properties priced over AED 15 million, remains vibrant. Palm Jumeirah leads this segment with 51 transactions, followed by Dubai Water Canal and Dubai Healthcare City II with 28 and 18 transactions, respectively. This growth trajectory reaffirms Dubai’s status as a leading global real estate market, offering abundant opportunities for investors and homebuyers alike.

In the villa segment, properties priced between AED 2 and 5 million are the most popular, accounting for 75% of sales. This range attracts buyers seeking spacious accommodations and amenities without delving into the ultra-luxury segment. On the other hand, the off-plan apartment market is dominated by properties under AED 2 million, which constitute 71% of total transactions. This affordability appeals to middle-income earners, expatriates, and low-capital investors.

In the affordable villa segment, prices per sq.ft. increased by up to 7% in the first half of 2024. Al Ghadeer and Al Samha villas saw hikes of 6.10% and 5.57%, respectively. However, Khalifa City villas experienced a slight price drop of 1.73%.

Dubai’s property market is evolving, offering a mix of affordability and luxury to meet the needs of a diverse buyer base. As the city continues to develop, its real estate market remains a beacon of opportunity and growth.

Original article reference: Zawya.