Dubai’s off-plan property market has experienced significant growth in the first six months of 2024, according to the latest report by Bayut.
The sector has seen sales transactions reach AED103.8 billion, indicating robust investor interest and market performance.
The report highlights that demand continues to outpace supply in the emirate’s property sector. This growth, coupled with a thriving rental market, has contributed to higher rental yields for investors.
Dubai’s affordable off-plan hotspots identified
“Over the past year and during the first six months of 2024 in particular, Dubai’s off-plan market has been thriving like never before and showing promising signs of extraordinary growth. With approximately 48,000 new units being launched during H1, demand is still high with the influx of new residents continuing to rise,” Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA said.
Bayut’s data reveals several trends in the off-plan market. For affordable properties, areas such as Dubai Investments Park (DIP), Dubailand, Dubai Residence Complex, and Dubai South have garnered substantial consumer interest.
In DIP, the Verdana 2 project has emerged as a popular choice for budget-conscious investors. The development offers apartments with average prices just above AED500,000, making it a sought-after option in the affordable segment.
For those seeking affordable off-plan villas, Reportage Village in Dubailand has attracted significant attention. The project offers units priced slightly over AED2 million.
In the mid-tier segment, Jumeirah Village Circle (JVC), Arjan, and Jumeirah Lake Towers (JLT) have proven popular among apartment seekers. For villa buyers in this category, Al Furjan, Arabian Ranches 3, and Nad Al Sheba 1 have seen considerable interest.
The luxury segment of the off-plan market has been dominated by high-rise projects in Business Bay, Downtown Dubai, and Palm Jumeirah.
The report notes that the high demand and limited supply have “heightened” competition in the emirate’s real estate sector, with investors particularly drawn to prime locations, considering their potential returns and strategic benefits.
Technological advancements are playing a role in shaping investment strategies. AI-driven platforms like TruEstimate are providing enhanced market transparency, allowing investors to make more informed decisions.
“The momentum is also strong, thanks to ongoing infrastructural developments and Dubai government’s constant adeptness at navigating global economic shifts. At this pivotal time, during the rise of the off-plan market, strategic initiatives such as enhanced market transparency through advanced tools like TruEstimate, will go a long way towards empowering investors with real-time data and comprehensive market insights,” Khan said.
Government policies have also contributed to the market’s performance. Measures aimed at protecting investor interests and promoting sustainable growth have bolstered confidence in the sector.
“With Dubai’s continuous innovative efforts to create value for investors, we can easily expect the off-plan market to be poised for sustained success in the long-term,” Khan added.
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