Dubai Off-Plan Sales Hit AED 16.8 Billion in July - What's Driving the Surge?

A Market Still Anchored by Off-Plan

Off-plan sales continued to anchor Dubai's property market in July, with 9,293 transactions worth AED 16.8 billion, representing 69% of total volume and 65% of residential value. That means more than two in every three property transactions in Dubai last month were off-plan - a figure that underlines just how central new-build stock has become to the city's real estate story over the past several years.

This isn't a new phenomenon, but the scale of it continues to raise questions for buyers weighing their options: why is off-plan capturing such a dominant share, and is that likely to continue?

Why Buyers Keep Choosing Off-Plan

Several factors converge to explain off-plan's continued dominance. Payment plans remain the single biggest draw - many developers offer structures that spread payments over years, with a relatively small percentage due on handover. This lowers the barrier to entry considerably compared to secondary market purchases, which typically require larger upfront capital.

Price positioning is another factor. Off-plan units are often priced below comparable ready stock in the same community, giving buyers room for capital appreciation between purchase and handover - assuming the market holds or grows over that period, which has broadly been the case in Dubai's recent cycle.

Developer activity has also kept pace with demand. Dubai's population growth and infrastructure expansion have given developers confidence to launch new projects steadily throughout the year, rather than holding back supply, which has kept the off-plan pipeline full and buyer choice wide.

What This Means for Investors

For investors, the current data suggests off-plan and secondary market opportunities serve different purposes rather than competing directly. Off-plan offers lower entry pricing, payment flexibility, and exposure to capital growth ahead of completion - but can sometimes come with construction and delivery timeline risk. Secondary market properties offer immediate rental income and the ability to assess a completed asset in a proven community, but typically require more capital upfront.

The 65% share of residential value flowing into off-plan in July suggests investor confidence in this segment remains strong, even as the secondary market shows signs of picking up pace elsewhere in the data.

A Word on Due Diligence

As with any off-plan purchase, the fundamentals matter as much as the headline numbers. Developer track record, escrow account compliance, expected handover date, and the maturity of the surrounding community infrastructure should all factor into a buying decision - the strength of the broader market doesn't remove the need for due diligence on any individual project.

Looking to explore current off-plan opportunities in Dubai? Browse Allsopp & Allsopp's off-plan listings or speak to one of our specialists today.

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