Dubai’s Off-Plan Property Market
The Dubai real estate market continues to defy global economic challenges, showcasing remarkable resilience and growth, especially in the off-plan property segment. As we delve into 2024, the numbers tell a compelling story of a market on the rise, with significant shifts in buyer preferences and investment trends.
Surge in Property Sales
The year 2024 has witnessed a notable surge in property sales across Dubai, particularly in the off-plan sector. Compared to the same period in 2023, there’s been a 9.4% increase in the sale of properties such as apartments. However, the standout performer in the market has undoubtedly been villas, with an extraordinary 53% surge in sales since 2023. This shift underscores a growing demand for spacious, high-end living spaces, driven by both end-users and investors.
Off-Plan Properties: The Preferred Choice
The preference for off-plan properties over ready units is more evident than ever. Off-plan sales have dominated the market, accounting for a whopping 65% of total property transactions, leaving ready properties at 35%. This trend reflects buyers’ confidence in Dubai’s long-term growth prospects and the allure of customizable, brand-new homes.
Impressive Year-on-Year Growth
The overall sales volume in Dubai’s property market has seen a significant increase of 43.8% year on year, highlighting the market’s robust activity. Alongside this, the price per square foot has risen by 13.1% year on year, indicating a steady appreciation in property values. Furthermore, the total sales value has surged by 37.3% year on year, reinforcing Dubai’s status as a prime real estate investment destination.
Price Segmentation and Buyer Preferences
Dubai’s off-plan market caters to a diverse range of buyers, with various price segments seeing robust activity. A closer look at the numbers reveals:
30% of transactions have sold for properties priced below AED 1 million.
32% of sales have been in the AED 1 to 2 million range.
29% of sales have been within the AED 2 to 5 million bracket.
Only 10% of transactions have been for properties above AED 5 million, indicating a more significant demand in the mid to upper-mid range of the market.
These figures highlight the market’s accessibility to a broad spectrum of investors, from first-time buyers to seasoned investors looking for premium assets.
Mortgage Market Growth
The mortgage market has also seen substantial growth, with a 34.8% increase in mortgage value compared to 2023. This rise underscores the growing confidence among buyers in securing long-term investments in Dubai’s booming real estate market.
Price Per Square Foot: A Closer Look
When it comes to pricing, there’s a clear distinction between apartments and villas. For apartments, the price per square foot this year ranges from an average of AED 1,300 to as high as AED 2,600 for the more luxurious options. Villas, on the other hand, start at AED 1,182 per square foot in more average communities, reaching up to AED 2,100 in mid-range villa communities. These price points reflect the premium attached to space, luxury, and the lifestyle offered by Dubai’s varied neighborhoods.
Conclusion
Dubai’s off-plan property market in 2024 is a testament to the city’s dynamic real estate landscape. With a significant shift towards off-plan purchases, a surge in villa sales, and a diverse range of price points attracting a wide array of buyers, the market is poised for continued growth.
Now is the time to take advantage of the off-plan market, as many investors are doing, because of the low entry points and the potential for prices to rise further in Dubai’s booming market. These properties are set to match or even exceed the prices of ready units due to their newer construction, enhanced amenities, branding, and strategic locations. Contact a realtor at Prestige Edition today to secure your next real opportunity in Dubai’s real estate market.