Off-plan property sales in Dubai have hit a new milestone in 2025, with transactions exceeding Dhs90 billion between January and mid-May, according to W Capital, citing data from the Dubai Land Department (DLD).
Off-plan market share
The DLD data revealed that 40,500 off-plan transactions were recorded during the period, accounting for 38% of total real estate sales. In contrast, ready-built property sales reached Dhs147.4 billion, representing 62% of the market.
Of the off-plan sales, 36,359 transactions were for residential units, while 4,141 involved buildings.
Investor demand drivers
“Dubai’s off-plan real estate market is witnessing significant growth in 2025, making it a preferred destination for local and international investors,” said Walid Al Zarooni, CEO of W Capital.
He attributed this demand to several key factors, including competitive pricing, which makes off-plan units 5% to 15% more affordable than completed properties.
Al Zarooni also highlighted flexible payment options, including plans where investors pay 50% upon delivery.
“Off-plan properties in Dubai also boast high rental returns of up to 7%, making them an attractive option for those seeking a steady and stable return on their investments,” he said.
Future outlook positive
Al Zarooni expects demand for off-plan units to rise in the coming years, driven by population growth and an increasing need for new housing. Dubai’s target to reach 5.8 million residents by 2040, alongside significant government spending on infrastructure, is likely to support long-term real estate expansion.
He added that the wide range of off-plan projects across different areas, styles, and finishings reflects a maturing market and strengthens Dubai’s global investment appeal.
“Modern real estate legislations and the effective regulatory role of government agencies were among the most prominent factors that contributed to establishing a stable and secure investment environment,” Al Zarooni said.
He pointed to investor-friendly laws, tighter licensing rules for off-plan projects, and improved financing options—including off-plan-specific mortgage offers—as key contributors to growing market confidence.
Finally, Al Zarooni noted that major international events hosted in Dubai have added momentum to the market by accelerating project launches and attracting long-term investment interest.
tanvir@dubainewsweek.com
