Springfield Properties, a premier real estate brokerage in Dubai, reported substantial growth in the off-plan property market during the first half of 2024 (H1).
Off-plan properties in Dubai
Key areas for affordable off-plan properties include Dubai Investments Park (DIP), Dubailand, Dubai Residence Complex, and Dubai South.
Notably, Verdana 2 in DIP and Reportage Village in Dubailand are popular choices for budget-conscious buyers.
In the mid-tier segment, Jumeirah Village Circle (JVC), Arjan, and Jumeirah Lake Towers (JLT) attract signisficant interest, while Al Furjan and Arabian Ranches 3 are favoured for villas.
The luxury market is dominated by high-rise projects in Business Bay, Downtown Dubai, and Palm Jumeirah.
Overall, off-plan sales outpaced ready properties, accounting for 67% of the total sales value. The strong demand has heightened competition, drawing investors to prime locations for their potential returns and strategic benefits.
July 2024 set a new peak in property sales, reaching $13.5 billion (Dhs49.6 billion), a 31.63% increase over the same month last year. The month saw 15,994 transactions, a 43.2% rise compared to July 2023.
Springfield Properties
Farooq Syed, CEO of Springfield Properties, said: “The exceptional performance of Dubai’s real estate market in H1 2024 underscores the city’s dynamic growth and resilience. This surge in off-plan property sales highlights Dubai’s strategic importance as a global investment hub.
Farooq Syed, CEO of Springfield Properties
“The combination of innovative developments, supportive government policies, and a robust economic environment has made Dubai an attractive destination for investors worldwide. We remain optimistic about the continued growth and opportunities in the second half of the year.”
July property sales in Dubai
Over the past five years, July property sales in Dubai have risen significantly from $1.2 billion (Dhs4.4 billion) and 2,300 transactions in 2020 to nearly $13.7 billion (Dhs50 billion) and 16,000 transactions in 2024.
The Dubai off-plan property market has experienced remarkable growth, with sales transactions reaching Dhs103.8 billion in the first half of 2024. This surge is supported by a thriving rental market, offering investors higher rental yields.
Dubai’s real estate market
Dubai’s real estate market continues to attract high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs), driving demand for opulent villas and branded residences. In H1 2024, the city recorded 196 sales exceeding $10 million, reinforcing its status as a premier destination for luxury real estate.
The off-plan market has been thriving like never before, showing promising signs of growth. With approximately 48,000 new units being launched during H1, demand remains high with the influx of new residents continuing to rise, according to Bayut.
“Looking ahead, Springfield Properties projects sustained growth in off-plan sales in the second half of 2024, driven by new project launches and ongoing market momentum. The positive market trajectory and investor confidence indicate a thriving real estate environment, offering unparalleled opportunities for both local and international investors,” added Farooq.
The Dubai real estate market is on a trajectory of continued growth. As a leading global investment hub, Dubai offers immense value to investors and end-users alike, reinforcing its position as a premier destination for real estate investment.
tanvir@dubainewsweek.com
