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Dubai’s off-plan property sector is emerging as a dominant force in the real estate market following a subdued 2020 marred by the impact of the COVID-19 pandemic. During that time, the majority of buyers preferred completed or secondary units.
In the meantime, recorded sales have seen an increase before the handover, surging by more than eight times in the past few years. These sales now constitute over half of all transactions. In Q2, the emirate observed off-plan transactions valued at $9.3 billion, marking a staggering 750% rise from the $1 billion in deals recorded during the same period in 2020.
According to ZāZEN Properties, a Dubai-based developer, this translates to an astounding increase of approximately $8.16 billion in transactions within three years. This growth is attributed to the affordability of off-plan properties and the potential for a higher return on investment (ROI) that properties under construction offer.
Madhav Dhar, COO and founding member of ZāZEN Properties, says,“Off-plan real estate, especially when under construction, is significantly more affordable when compared to ready properties.”
As of August 2023, off-plan sales have reached their highest market share since the beginning of the pandemic, now accounting for 64.7% of the market share, as reported by Property Monitor.
The real estate data platform said, “New development project launches and the sale of off-plan properties have been significant drivers for the amplitude of transaction activity this year.”
“Off-plan sales last held a dominant market share of this level only briefly in April 2020 when the COVID-19 pandemic limited the ability to transact completed properties due to mobility restrictions and the temporary closure of Trustee offices,” the report said.
Month-on-month sales transactions experienced an 8.1% increase, totaling 12,134 sales, with August recording the highest volume. On the other hand, year-to-year transactions have surpassed 85,000 deals, marking a 41.9% increase compared to August of the previous year and a 125% increase from 2021.
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