With no signs of cooling down, Dubai's property market continues to experience a strong surge as new projects, particularly those from prominent developers, are quickly snapped up by eager buyers.
Well-established local developers, known for their reliable project delivery and high-quality developments, are seeing their offerings sold out in hours. Meanwhile, emerging players in the market are also finding success, with their projects often selling within days or weeks.
The sustained demand for established developers' projects is largely attributed to their reputation for timely delivery and quality construction, which offers buyers solid capital appreciation and substantial rental income. For newer developers, Dubai’s relatively lower property prices and higher returns compared to other global cities are driving sales as investors seize the opportunity for growth.
New entrants to the market are benefiting from Dubai’s global reputation, often referred to as 'Brand Dubai'. The city’s stringent regulations and close supervision of construction projects ensure that developers deliver what they promise, reassuring buyers that their investments are secure.
Many developers remain optimistic about the market's future, predicting continued strength through the latter half of 2024 and into 2025.
Dubai has truly established itself as a global city. The market is buzzing with energy and momentum, and initiatives like the Golden Visa have attracted a wave of new property buyers, according to Amira Sajwani, managing director of DAMAC Properties. She doesn't foresee any slowdown. In fact, relative to other major cities such as London, Paris, and New York, Dubai remains an affordable option, and she expects the market to keep growing at a healthy pace. Sajwani further emphasised that 2025 looks promising for the property sector.
DAMAC Properties recently demonstrated this strong demand, selling 600 units in its AED 1.2 billion Violet Phase 3 project within hours. This rapid uptake is consistent with the wider trend in the market.
The first eight months of 2024 have seen a flurry of new launches, with over 93,000 units coming to market, a record for the city. Major developers such as Emaar Properties, Nakheel Properties, DAMAC Properties, Sobha Realty, Samana Developers, and Danube Properties have been leading this wave of new developments.
Waterfront demand on the rise Samana Developers, for example, saw a rapid sell-out of its AED 660 million waterfront projects, Ocean Pearl 1 and Ocean Pearl 2, in September. The projects, located on Dubai Islands, offer one, two, and three bedroom apartments, along with luxurious four bedroom penthouses, each featuring private pools. The entire inventory was sold in just two hours.
CEO of Samana Developers, Imran Farooq, said that they are witnessing strong demand from international buyers, particularly from Europe, for our waterfront projects. The company plans to launch additional waterfront properties to cater to this growing demand.
Abu Dhabi-based Aldar Properties also experienced a similar trend, with the first two phases of its 'Athlon' project in Dubai selling out within 48 hours in May, generating AED 4.1 billion in sales.
New players, such as Majid Developments, are also finding success. The developer revealed that 40% of its initial project in Dubai had been sold even before the official launch, highlighting strong interest from both residents and investors looking for strong returns.
Interestingly, many developers are noticing a shift in buyer demographics. European investors, particularly from the UK, are increasingly outpacing their Asian counterparts in acquiring properties.
The UAE’s Golden Visa program has been a key driver behind this trend, with some developers even offering three Golden Visas as part of their property sales.
According to research from Emirates NBD, Dubai has already seen over 104,000 property transactions this year, closing in on the total sales recorded in 2023. The bank anticipates that the property market will continue at this pace, setting a new record for the highest number of residential units sold in Dubai’s history.
Original article reference: Khaleej Times.
