Dubai Real state market saw a surge in off-plan property sales during the second quarter of 2024. This segment comprised a substantial 63% of all property sales, reflecting strong investor interest in new developments.
While there was a modest 5% increase in launched units, off-plan transactions climbed an impressive 212% year-on-year. This growth is projected to continue, potentially positioning Dubai as a leader in branded residences by 2029.
Jumeirah Village Circle (JVC)
Retaining its popularity for the fourth consecutive quarter, Jumeirah Village Circle (JVC) led in off-plan transactions with 3,102 deals, totaling $805 million (AED 2.95 billion). Prices per square foot saw a healthy rise of 5-12% compared to the previous year. District 10 emerged as a top investment opportunity, offering apartments between AED 250,000 and AED 2.6 million. While property prices have doubled in recent years, JVC is expected to receive a significant influx of new units, potentially impacting Dubai Real state market dynamics.
Mohammed Bin Rashid City (MBR City)
Mohammed Bin Rashid City (MBR City) witnessed significant growth with 1,998 transactions valued at $664 million (AED 2.4 billion). Deliveries are expected to reach 19,845 units by 2028, including notable projects like The Crest at Sobha Hartland and The Waterway. Sobha Hartland and Dubai Hills Estate saw price increases of 15% and 17% respectively, with one and two-bedroom homes being the most popular.
Business Bay
Business Bay high-demand area recorded 1,863 transactions with a total sales value of $1.4 billion (AED 4.8 billion). Average gross investment yields remained steady at 7.8%, attracting interest in luxury projects like Jumeirah Living Business Bay and Bayz 101. The coming years will see an influx of around 20,000 new residential units.
Dubai South
Driven by the expansion of Al Maktoum International Airport, Dubai South witnessed a surge in townhouse and villa sales, with growth of 75% and 360% respectively year-on-year. Apartments still dominate sales at 91%, with an additional 14,000 units expected in the coming years.
Dubai Off-Plan Property Market Outlook
The Dubai off-plan market is on a strong trajectory, with over 52,000 completions expected in 2024 and 78,361 new units launched so far. With nearly 300,000 residential units under construction, the Real Estate market shows no signs of immediate slowdown.
However, some experts caution about the potential impact of this influx on long-term Dubai Real Estate market dynamics and property prices. Recent reports indicate a slight decline in median off-plan sales price and challenges for individual sellers in off-plan projects.
Despite these concerns, investor confidence in the long-term potential of Dubai’s off-plan market remains strong, as evidenced by a significant year-on-year increase in off-plan residential registrations.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-top-off-plan-investment-areas-revealed-by-property-experts
Published on: 17 Jul 2024