Dubai Off-Plan Market Report
Dubai's real estate market has excelled in Q1 2023, with a total transaction value of AED 157 billion ($42.8 billion) driven by both local and international demand. The Dubai off-plan market has surpassed secondary transactions, accounting for over 54.49% of all transactions, with a year-on-year increase of 94.4%. This growth can be attributed to a backlog of projects, attractive investment opportunities, and a shift in buyer demographics.
Rising rents and sale prices have pushed buyers into the off-plan market, where they are guaranteed a unit in their name, even if they have to wait a few years for completion. Newer developers are entering the market, offering something different and unexpected, which is pushing them to the fore. Dubai's government has introduced regulations that offer protection and security for investors in the event that a project does not reach completion.
Overall, the outlook for Dubai's off-plan market in 2023 is optimistic, with continued growth expected due to the ongoing demand for new properties. The backlog of projects and the release of new projects by both established and newer developers will ensure a steady supply of off-plan properties in the market. This will continue to attract both local and international investors looking for opportunities to purchase properties at a lower price point than on the secondary market.