Off-Plan Real Estate in its Surging Course
Dubai’s real estate market continues to soar with its impressive course defying global trends and setting new records in property transactions. An account for 53% of all units sold during the first half of 2023 leading to the expansion of the off-plan market.
Expecting an influx of over 70,000 people for COP28 (the UN Climate Change Conference), Dubai’s real estate sector is all set for an exciting future. DHG Properties, a renowned Swiss property developer with three decades of experience, shares insights into why they believe the off-plan market is leading in this growth and what it means for investors.
Shift in Property Transactions in Dubai
According to research conducted by Savills, a property agency, Dubai’s real estate transactions have impressively surged by 44% in the first half of 2023, reaching nearly 60,000 units. This not only marks a staggering 209% growth compared to the five-year average for this period but also underlines Dubai’s lasting allure as a stable investment destination. The most remarkable aspect is that the surge in activity has been witnessed in summer months which conventionally is much slower other times. This proves the real estate market’s robustness.
Off-Plan Market Dominance in Dubai
The first half of 2023 witnessed 57,700 unit transactions making the residential sector in Dubai on track to experience its busiest year. Representing a remarkable 12% growth compared to H2 2022 and an impressive 44% increase versus H1 2022.
The off-plan market segment is the main driving force in driving this growth, constituting nearly 53% of all units sold. Buyers are increasingly inclined to off-plan properties as a strategy to navigate the current economic landscape and avoid committing to high lending rates.
The growth in the number of project launches and developments emerging throughout the country because of the surge in demand.
COP28 and Economic Diversification in Dubai
The upcoming UN Climate Change Conference, COP28 will garner more attention and foreign investment. The conference is expected to host more than 70,000 attendees. UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan views COP28 as an opportunity for innovation and diversification of UAE’s economy. With such incredible leadership, the UAE’s real estate sector is set to prosper alongside other industries.
Why the Shift in Consumer Behaviour in Real Estate sector?
This surge in Dubai’s real estate market has revealed a notable shift in consumer behavior. The flexibility of the market and the investment incentives promising higher ROI are seeing a shift in the inclination of buyers towards off-plan properties. This trend aligns with the rising preference for flexible payment plans, which play a pivotal role in attracting a broader range of investors.
Founder and Director of DHG Properties stated his opinions about the real estate market’s growth in the dynamic city. The growth in the off-plan market aligns with DHG Properties’ vision of offering affordable yet premium investment opportunities to investors. Experienced investors and first-time buyers benefit from the lower prices and greater financial flexibility offered by off-plan properties. With numerous projects announced monthly in Dubai, developers compete primarily on prices which is interesting to buyers.
Dubai’s real estate market remains a model of stability and growth in the ever-changing global economic landscape. The surge in the off-plan transactions stands as proof of Dubai’s resilience and adaptability to changing buyers’ preferences. As Dubai continues to attract new markets and evolve alongside its consumers, the real estate industry stands poised to achieve new heights of success.
Source: Arabian Business
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