Off-plan sales dominate 63% of Dubai home sales in 2024
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Dubai: Off-plan sales dominate 63% of residential sales in 2024

Dubai: Off-plan sales dominate 63% of residential sales in 2024

Total residential sales transactions surged by 40.3 per cent to 170,992 units in 2024, more than five times the number recorded in 2020, the report showed

Gulf Business
Dubai real estate performance in 2024 image-Getty-Images

Dubai’s real estate market continues to thrive, with off-plan transactions now accounting for 63 per cent of all property sales in 2024, up from 54 per cent in 2023, according to a new report from Engel & Völkers Middle East.

This surge in off-plan activity reflects growing demand for new developments, fuelled by competitive pricing, attractive payment plans and limited supply in the secondary market.

The report highlights a significant rise in total residential sales, which climbed by 40.3 per cent year-on-year to 170,992 units in 2024 — more than five times the number of transactions recorded in 2020.

This surge underscores the strong investor confidence in Dubai’s property market, with apartment sales leading the charge.

Apartment transactions grew by 47.6 per cent compared to the previous year, making up nearly 90 per cent of the overall market expansion.

The popularity of apartments can be attributed to their affordability, strong rental yields, and appeal to end-users and investors.

Palm Jumeirah, Downtown Dubai, and Dubai Marina lead luxury demand

Luxury real estate remains a focal point, with high-net-worth individuals continuing to favour prime locations such as Palm Jumeirah, Downtown Dubai, and Dubai Marina. However, newer developments, including Palm Jebel Ali and The Oasis, are generating fresh interest in off-plan properties, catering to affluent buyers seeking exclusivity and long-term capital appreciation.

In the ultra-luxury segment, properties priced over Dhs10m saw a notable 20.5 per cent increase in sales, further solidifying Dubai’s status as a leading global destination for prime real estate.

“The continued dominance of off-plan sales reflects a clear shift in buyer preferences, with investors increasingly looking for properties that offer long-term value and flexible financing options,” said Daniel Hadi, CEO of Engel & Völkers Middle East. “Developers are responding with innovative projects, while government-led initiatives, such as long-term visas and free zone expansions, further strengthen Dubai’s attractiveness as a real estate investment hub.”

Commercial property market is thriving

Dubai’s commercial real estate market is also experiencing robust growth, buoyed by strong economic fundamentals and an influx of new businesses.

More than 24,000 new business registrations were recorded in the first half of 2024, which has contributed to high occupancy rates in key business districts such as DIFC, Downtown Dubai, and Business Bay, where occupancy levels have reached between 95 per cent and 97 per cent.

This demand has driven double-digit rental growth across the commercial sector. Office rents rose 11 per cent year-on-year, retail rents increased by 9.7 per cent, and warehouse prices surged by 21.1 per cent, reflecting the city’s growing need for high-quality commercial spaces.

The limited supply of Grade A office space has spurred new development activity, including Aldar Properties’ upcoming project on Sheikh Zayed Road, as well as additional commercial launches planned for the remainder of the year.

Promising outlook for 2025

In 2025, the city’s real estate market will remain a key driver of economic growth.

Investor confidence is being propelled by rising property values, the ongoing expansion of the luxury sector, and the continued dominance of off-plan transactions.

Developers are responding to the heightened demand with new projects, while regulatory frameworks, such as long-term visas and other incentives, continue to support long-term investment in the market.

Read: Dubai real estate sector sees transactions hit Dhs761bn in 2024

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