Affordability and appreciation driving Dubai’s off-plan property market

In the first half of 2023 alone, off-plan sales skyrocketed by 40 per cent, resulting in over 60,000 transactions. And a recent report by Haus & Haus said off-plan properties made up for 63 per cent of the total sales in the second quarter of 2024 with transactions growing 212 per cent year-on-year.

Analysing the growing trend, Oliver Mitri, Co-Founder of Imobiliare Dubai, said the key drivers of this boom is affordability and appreciation.

Mitri said: “Off-plan properties typically come with a 15-20 per cent discount compared to their ready-built counterparts. This price advantage is further enhanced by flexible payment plans offered by developers, allowing buyers to spread payments over time rather than facing a large upfront cost.

“But it is also not just about the initial savings. Dubai’s prime areas are witnessing a year-on-year property value increase of 7-10 per cent. Imagine buying a piece of Downtown Dubai or Palm Jumeirah today and watching its value soar as the neighbourhood evolves. It’s this potential for capital appreciation that’s turning heads and bringing more investors into Dubai.”

Dubai’s future growth areas

In addition to prime areas, newer developments in areas like Dubai South and Expo City are drawing considerable interest. These regions, which are expected to house over 70,000 residents by 2030, are supported by extensive infrastructure projects and government-backed initiatives.

Mitri added: “Investors are taking a long-term view, recognising the potential for these areas to become the next major real estate hubs.

“With substantial development plans in place, off-plan properties in these areas offer early investors the opportunity to benefit from both price appreciation and the future appeal of fully realised communities.”

Government policies

Dubai’s real estate market also enjoys a favourable policy environment that encourages foreign investment.

Long-term residency visas, particularly for property buyers, have enhanced Dubai’s appeal as a global investment destination. These visas provide a sense of security for investors, allowing them to plan with greater confidence.

The government’s ongoing efforts to diversify the economy and attract international investors have further solidified the city’s position as a leading real estate market on the global stage.

Mitri was bullish on the real estate market, and added: “Experts predict that the demand for off-plan properties will continue to grow over the next 3-5 years, driven by ongoing development, favourable government policies, and strong investor interest.

“The combination of affordable entry points, flexible payment plans, and the potential for future appreciation makes off-plan properties an attractive proposition for investors seeking long-term gains.”