Dubai real estate investors are awaiting opportunities as new community announcements are set to see further expansion.
As off-plan sales continue to dominate the market, Dubai is poised to witness the emergence of three new master communities in 2024, marking a significant phase of expansion for the emirate’s real estate sector, according to D&B Properties.
Citing recently published data, it said property prices in Dubai saw a modest increase of 0.83 per cent in February, with moderate price appreciation expected to persist.
Dubai real estate forecast
The market recorded its highest-ever sales transaction volumes for February, soaring by 30.4 per cent year-on-year.
Notably, mid-tier price points experienced market share growth, with Dubai Maritime City emerging as a popular waterfront location.
Soliman Hossameldin, Director of Digital Marketing at D&B Properties, said: “The off-plan segment continues to be a driving force in Dubai’s real estate market, with new launches maintaining momentum.
“The announcement of three new master communities underscores the enduring appeal of Dubai’s property market for investors and end-users alike.
“While mortgage activity saw a marginal decline in February, loans for new purchases gained strength, indicating continued confidence in Dubai’s real estate market. The availability of financing options remains a crucial factor in driving property ownership in the emirate”.
Preliminary numbers for February indicate nearly 10,000 units added to the market for sale, predominantly apartments.
Moreover, recent land sales hint at the forthcoming development of new master communities, with Emaar announcing two projects—The Heights Country Club and Grand Club Resort—alongside another community slated by DAMAC for May.
Looking ahead, D&B Properties said, industry experts are maintaining an optimistic outlook, foreseeing sustained growth in property values with minimal risk of a market bubble.
However, they caution that a phase of hyper-supply may follow the expansion phase, leading to fluctuations in prices—a natural cycle within real estate markets.
Despite concerns about potential supply imbalances, the absorption rate remains robust, with both end-users and rental investors swiftly acquiring newly launched units.
Speculative activity has not gained significant traction, primarily occurring for units nearing the 12-month handover mark.
In addition to off-plan resales, key data-driven indicators warrant careful attention in the coming months, including a notable deceleration in monthly sales transaction volumes and an uptick in developer incentives.
These indicators could signal an impending market shift. The combination of off-plan dominance, new master community developments, and steady price appreciation signals a promising trajectory for Dubai’s real estate sector, according to D&B Properties.
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