In this week’s episode of Taking Care of Business, join our Operations Director; Paul Kelly and our Head of Developer Sales; Fintan Flannelly, to talk all-thing off-plan. Uncover how the off-plan market soared to new heights in August 2023, and what new developments are coming to Dubai?
Let’s jump into what took place throughout the podcast!
Paul kicks off the discussion by highlighting the impressive growth in off-plan sales. In August, off-plan sales accounted for a significant 58 percent of the property market, a substantial increase from the typical 50-50 split between off-plan and secondary sales. Year-on-year comparisons show a remarkable 79 percent increase in off-plan sales in 2023, with 41,775 off-plan units sold by August.
#ICYMI - Take a look at our August Market Snapshot here.
Fintan delves into the dynamics behind this surge. He emphasises that this trend isn't just a recent development but has been building for the past 18 months. Multiple factors are contributing to this boom, including geopolitical situations, economic concerns in the Eurozone, and Dubai's vision for 2040, aiming to attract population growth and diverse industries.
The conversation also touches on the pressing issue of commercial real estate. With Dubai's growing population and influx of businesses, there's a significant shortage of commercial office space. Commercial prices have soared, and developers haven't introduced many commercial off-plan options. However, Fintan points out that developments like Expo City are beginning to address this need.
The hosts discuss the competition among developers in terms of flexible payment options and other incentives. While pricing and payment plans are still factors, the focus is increasingly shifting towards the quality and features of the product. Smart home technology, fully furnished properties, and other amenities are becoming differentiating factors.
International investors are increasingly drawn to Dubai's real estate market. Buyers from different countries see Dubai as a safe haven for their investments, given its international credibility. Fintan also mentions that many investors are diversifying their portfolios, looking for real estate assets pegged to the dollar.
The podcast highlights examples of international developers entering the Dubai market. Companies like Leo's from the UK and Fortimo from Switzerland have chosen to invest in Dubai due to the high demand and favourable market conditions. They've brought their expertise to Dubai, offering quality developments to a global clientele.
As the conversation wraps up, Fintan predicts that the off-plan market will continue to thrive in the coming months. With the arrival of the tourist season and more projects in the pipeline, Dubai's real estate market is poised for exciting times ahead.
Tune in to Taking Care of Business, every Friday!