The UAE real estate sector saw sales hit $124bn last year, driven in large part by Dubai off-plan property purchases, according to analysis by ZāZEN Properties.
Off-plan real estate sales in Dubai will be further boosted by changes to Golden Visa rules in the country and changes to supply, the developer said.
The off-plan property segment has grown for four consecutive years and despite the completion of more than 60,000 units, demand continues to exceed supply with the city’s population rapidly growing to rank among the fastest globally, said ZāZEN Properties.
Dubai real estate forecast
Collectively, the off-plan property segments of Dubai and Abu Dhabi propelled the UAE’s overall real estate market, enabling the country to surpass AED455.7bn ($124bn) in sales last year.
Dubai was a particularly notable bright spot, benefitting from a flourishing tourism sector that increased home demand and witnessed off-plan sales value of AED160.46bn ($43bn).
This represented a 72.3 per cent growth, compared to the AED93bn ($25.3bn) sales value seen in 2022.
Furthermore, 68,783 off-plan sales transactions were logged in 2023, reflecting a 59.4 per cent increase from 43,151 in 2022, and the greatest yearly performance for this segment to date.
With recent news reporting that the UAE has removed the AED1m ($272,294) minimum down payment requirement to qualify for a golden visa through real estate investment, this will open the door for thousands of investors to more easily access the country’s popular Golden Visa program.
Not only will this incentive benefit the nation’s economy but it will also play an instrumental role in boosting the UAE’s real estate sector value and likely see developers ramp up their already unprecedented pace as it relates to the construction of new projects.
Madhav Dhar, COO and founding member of ZāZEN Properties, said: “The UAE’s visionary decision to eliminate the AED1m down payment requirement for the golden visa program will strengthen Dubai’s real estate landscape.
“This bold move not only enhances accessibility for current and new investors by enabling them to cement Dubai as their secondary home or primary base but it also injects fresh vitality into the market by allowing them to take advantage of world-class infrastructure and global connectivity.
“By facilitating easier entry for investors and stimulating demand, the UAE has positioned itself as a global leader in fostering a resilient and competitive real estate sector.
“This forward-looking policy underscores the country’s dedication to innovation and growth and we anticipate this change to have a profound and positive impact on the industry, paving the way for a new era of opportunities and sustainable development.”
ZāZEN Properties is catering to the mid-market while ushering in a new era of sustainability and contributing to key initiatives like UAE Net Zero 2050 and the Dubai 2040 Urban Masterplan.
The homegrown brand’s latest development, ZāZEN Gardens in Al Furjan, will become the first LEED Gold-certified and Well-Being integrated residential development in April 2024.
Annually, it will reduce 469 metric tonnes of carbon emissions and generate close to 390,000 kWh of onsite solar electricity, which is about 30 per cent of the common area requirement yearly.
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