Dubai’s Booming Off-Plan Property Market
The opportunity to buy off-plan property in Dubai. has never been more promising, with a notable surge in interest from investors and end-users. Market consultants have identified this trend, which underscores the appeal of off-plan properties in the emirate as a lucrative investment.
Off-Plan Transactions on the Rise in the Emirate
Over the past year, the off-plan market has experienced a substantial upsurge, attracting both local and foreign property buyers and investors. This surge, ranging from 40 to 60 percent more buyers and investors, reflects a thriving environment for real estate investments in the UAE.
Analysts at a renowned property management company say that they have observed a remarkable 35 percent increase in demand for off-plan properties in Dubai over the last three months compared to the same period the previous year. This significant rise has led to off-plan transactions claiming a substantial 61 percent share of Dubai’s overall real estate market. However, it is essential to recognize that the real estate market is influenced by various factors, and trends can evolve over time.
Dh34 Billion in Off-Plan Transactions Recorded in Dubai
In the second quarter of the year, Dubai recorded off-plan transactions amounting to Dh34 billion, representing a remarkable 750 percent increase from the Dh4 billion deals recorded in the corresponding period in 2020. This growth equates to a staggering Dh30 billion increase in transactions over the course of just three years, as reported by a known property company.
A recent study by Property Monitor revealed that off-plan sales held the largest market share as of August this year, constituting 64.7 percent of the market. The total volume of sales transactions has increased by 8.1 percent month-on-month, reaching a historic high of 12,134 sales, setting a new record for August.
Why Off-Plan Properties Are Gaining Popularity?
Industry experts emphasize that the current market conditions make it the best time to invest in off-plan properties for many reasons. Firstly, the rising mortgage rates have impacted the feasibility of purchasing ready properties for investment. Despite increased rental yields, higher mortgage servicing costs have led to reduced net yields after factoring in all expenses.
As a result, the economics of investing in ready properties for returns have become less favorable. Off-plan investments, on the other hand, offer a unique advantage by enabling investors to allocate funds toward properties still available at their original prices. The flexibility of payment plans helps mitigate the impact of high lending rates, ensuring greater adaptability in managing finances. Moreover, Dubai’s population growth serves as a force to drive demand for residential properties.
Enjoy Substantial Property Appreciation Over Time
Off-plan properties hold substantial potential for appreciation in value by the time they are completed. Buying off-plan properties allows investors to secure a property at a lower price and expect high returns in the future.
Conclusion
Dubai’s off-plan property market is experiencing a surge in demand for interest and investment. With rising mortgage rates affecting the appeal of ready properties for investors, off-plan investments are becoming a compelling alternative for property buyers. The flexibility in payment plans, combined with Dubai’s population growth and ongoing development, make off-plan properties an attractive choice for those seeking long-term value appreciation. Would you like to explore more off-plan properties in Dubai? Contact AZCO Real Estate Brokers LLC now, and our agents will guide you!
