Dubai off-plan real estate segment has recorded transactions worth AED90 billion (approximately $24.5 billion) as of mid-May 2025, reflecting strong investor confidence in this sector. According to figures compiled from the Dubai Land Department, the number of off-plan property deals reached 40,500 between January 1 and May 15 this year.
These off-plan sales represented 38 percent of all real estate transactions in Dubai during this period, while completed, ready-to-move-in properties accounted for the remaining 62 percent, totaling AED147.4 billion ($40.1 billion).
The data further revealed that out of the total off-plan transactions, 36,359 involved residential units and 4,141 were related to building projects. This indicates a diverse investor interest across multiple asset types within the off-plan segment.
Investor Confidence Driven by Competitive Pricing and Flexibility
The growing popularity of off-plan investments is largely attributed to competitive pricing models and flexible payment schemes offered by developers. Prices for off-plan units are generally 5 to 15 percent lower than completed properties, making them more accessible to a broader range of buyers.
Additionally, many developers provide attractive financing terms, such as staggered payments and the option to pay as little as 50 percent upon handover. These features make off-plan purchases a more viable and less burdensome option for both seasoned investors and first-time buyers.
One of the major draws of the off-plan sector is its strong rental yield potential. Investors can expect returns of up to 7 percent annually, positioning these properties as stable income-generating assets.
Outlook: Sustained Growth Fueled by Urban Expansion
The demand for off-plan housing is anticipated to remain strong over the coming years, bolstered by Dubai’s continuous population growth and the increasing need for residential developments. The city’s ambition to accommodate a projected population of 5.8 million by 2040 is expected to drive the launch of more housing projects.
Significant government expenditure on infrastructure and urban development is also playing a pivotal role in stimulating demand in the real estate sector, especially within the off-plan market.
Regulatory Environment Enhances Market Stability
Dubai’s robust legal and regulatory framework has been instrumental in creating a secure investment environment. Government oversight, transparent licensing procedures, and regulations designed to protect buyer interests have helped reduce market risks, fostering greater investor trust.
Improved Access to Real Estate Financing
The availability of customized financing solutions, including those specifically tailored for off-plan properties, has further supported the market’s expansion. Certain banks now offer targeted mortgage products, enabling a broader pool of buyers, especially newcomers, to enter the market and benefit from favorable investment conditions.
Source: https://www.arabianbusiness.com/industries/real-estate/off-plan-real-estate-sales-in-dubai-have-already-reached-24-5bn-this-year-as-high-returns-and-easy-finance-lure-investors
