Why is Dubai’s Off-Plan Property Market So Popular in 2024?
The off-plan property market in Dubai has seen an exceptional surge, with under-construction properties accounting for 60% of total transactions in July 2024—a 49% year-on-year increase. Dubai’s real estate market has been thriving, breaking numerous records since the post-pandemic recovery, and off-plan sales are now taking center stage.
In 2019, Dubai’s real estate market saw transactions worth $61.5 billion, but the pandemic caused this figure to drop to $47.65 billion in 2020. However, by 2021, the market rebounded to over $80 billion, exceeding even the most optimistic predictions. The upward trend continued, with 2023 recording over $172 billion in real estate transactions. This year, the spotlight is on off-plan properties as a key driver of growth.
So, what’s fueling the popularity of off-plan properties in 2024? Here’s a closer look:
1. Supply and Demand Imbalance
With the growing demand from high-net-worth individuals (HNWIs) and local buyers, the availability of ready homes is becoming scarce. Dubai’s population is also growing at a fast pace, with nearly 100,000 new residents added between January and August 2024. This surge is placing pressure on the ready home market, prompting buyers to turn to off-plan developments to secure their dream homes.
2. A Wave of New Projects
The shortage of ready properties isn’t the only factor driving off-plan demand. Developers in Dubai are launching new projects at an unprecedented rate. For example, in 2023 alone, Damac Properties introduced 20 new developments, and other developers followed suit. In 2024, Dubai is expected to deliver over 38,000 new homes. This influx of projects provides buyers with abundant options, ensuring that off-plan properties remain highly sought after.
3. Customisation and Flexibility
Off-plan properties offer a level of personalisation that ready homes often can’t match. Buyers can customise everything from room layouts to the latest technology integrations, fixtures, and fittings. This level of control allows future homeowners to create spaces that suit their unique preferences. Ready homes, by contrast, are often complete, leaving buyers with limited flexibility for modifications.
In conclusion, while Dubai’s secondary real estate market remains strong, off-plan properties are experiencing extraordinary growth due to a combination of supply and demand dynamics, new project launches, and the appeal of customisation. As more buyers seek out these benefits, Dubai’s off-plan property market looks set to continue its dominance for the foreseeable future.
