The off-plan real estate sector of Dubai has shown resilience, as it has recorded impressive growth for the past four years in a row.
Thanks to this growth, the real estate market in the UAE recorded sales worth AED 455.7 billion, or $124 billion in 2023.
Demand and supply
Going forward, the demand is expected to surpass supply and realty experts stated that the off-plan sector would give a boost to the growth of the overall market in 2024 and beyond.
Founding member and chief operating office of Zazen Properties, Madhav Dhar, said that even though more than 60,000 units had been completed, the demand is still higher than supply.
This is due to the fact that the population of Dubai is growing rapidly to rank amongst the fastest in the world.
Dubai proved to be a prominent bright spot in 2023, thanks to a flourishing tourism sector, which boosted home demand.
In addition, it recorded a sales value of AED 160.46 billion, which is an increase of 72.3% as compared to values recorded in 2022 of AED 93 billion.
In addition, the total number of off-plan sales transactions recorded in 2023 stood at AED 93 billion, which was a 59.4% increase from 2022 when the number had stood at 43,151.
This is the greatest yearly performance that the sector has recorded to date.
According to Dhar, the real estate landscape of Dubai will strengthen further due to the visionary decision of the UAE to eliminate the down payment requirement for the golden visa program of AED 1 billion.
For new and current investors, it gives them the ability to cement Dubai as their primary base or secondary home.
In addition, it also brings some fresh vitality into the market, as it offers global connectivity and world-class infrastructure.
The UAE has actually become a global leader in ensuring a competitive and resilient real estate sector by stimulating demand and offering investors an easier entry.
Dhar stated that the country’s forward-looking policy highlights its dedication to growth and innovation and this change is likely to have a positive and profound impact on the real estate industry.
According to realty experts, thousands of investors would be able to access the popular visa program of the UAE due to their move to eliminate the down payment requirement.
This incentive is expected to benefit the economy of the nation and also play a key role in giving the value of the real estate sector in the UAE a boost.
It would push developers into ramping up their pace in terms of construction of new projects, which is already moving at an unprecedented rate.
Majority of the property sales that took place in Dubai in the third quarter of last year were off-plan transactions.
This makes them around 65% of the total sales, which is around AED 13.62 billion. As for the total volume of property sales, off-plan transactions made up 61%.