The real estate market in Dubai saw a surge in off-plan property sales in February 2023. According to Allsopp & Allsopp’s proprietary data, there has been a 42.1% increase in off-plan property sales compared to the same period last year.
This rise in demand for off-plan properties is a positive indication that the Dubai property market is gaining momentum and confidence in the future prospects of the city's economy. Fintan Flannelly, the Head of Off-Plan Sales at Allsopp & Allsopp, has attributed the increase to developers catching up with the demand.
"Fintan Flannelly said, "The demand for off-plan properties in Dubai has been on the rise for the past few years, and the current market conditions have accelerated the trend. We are seeing more and more developers come into the market, which is a clear indication that the industry is confident in the long-term prospects of Dubai's economy. Timely as undersupply looms, the market is hungry to see a healthy balance of demand and supply, which will ultimately benefit both buyers and developers."
The Dubai property market has historically been a preferred destination for real estate investors from around the world. The government's efforts to diversify the economy has led to significant investments in infrastructure and the introduction of golden visas for foreign investors, which has been one of the driving forces for the real estate sector. The increase in off-plan property sales is an encouraging indication that the real estate market in Dubai continues to rise comparable to other big centres in the world.
A newly released data by Goldman Sachs for example, states that the United States has seen a 4.4% reduction in sales prices, and 7.6% to 5.8% drop in annual rent increases. From November to March, the market has seen six-months of declines in housing demand. While the economic market globally sees a slowdown, Dubai’s property market sees a consistent and strong boom and is encouraging foreign investors to consider it a space for investments with the introduction of Golden Visas and higher returns on investment.
The average price per square foot for off-plan properties has remained stable, with only a marginal increase of 1% compared to the same period last year. This further confirms the market's stability, making it an attractive destination for both investors and end-users. Not just all, with the continuous rise in rental yields and return on investments in Dubai, foreign investors and residents are highly anticipating new properties within the city. As the undersupply for ready homes across the city becomes more evident, demand and price points are soaring high and demand for off-plan properties is also at a rise.
Additionally, with a greater influx of properties entering the market, investors can anticipate a steady growth, which presents an opportune moment to invest in the Dubai property market.