In 2023, the United Arab Emirates’ real estate market saw a remarkable surge, reaching a total of AED 455.7 billion in sales, significantly driven by Dubai’s dynamic off-plan sector. This sector has shown continuous growth over the past four years and is expected to fuel the market’s expansion in 2024 and beyond.
Madhav Dhar, COO and co-founder of Zazen Properties, highlights that despite the introduction of over 60,000 new units, demand in Dubai still surpasses supply. This is attributed to the rapid population growth, placing Dubai among the top globally in this respect.
Dubai’s thriving tourism industry played a crucial role in 2023, boosting housing demand. The city saw a sales value of AED 160.46 billion, marking a 72.3% increase from the previous year. Additionally, off-plan sales transactions reached a record high of 68,783 in 2023, a 59.4% increase from 2022.
Dhar also pointed out the significant impact of the UAE’s decision to remove the AED 1 million down payment requirement for the golden visa programme. This change is expected to attract more investors, enhancing Dubai’s real estate landscape by making it more accessible as a secondary or primary residence. This policy is seen as a testament to the UAE’s commitment to fostering a resilient and innovative real estate sector, paving the way for sustainable growth and new opportunities.
Experts in the industry have noted the potential influx of investors due to the eased requirements for obtaining a golden visa. This move is anticipated to not only boost the UAE’s economy but also significantly enhance the value of its real estate sector, encouraging developers to accelerate their project construction.
In the third quarter of 2023, off-plan properties dominated Dubai’s property sales, accounting for 65% of the total sales value, which stood at AED 13.62 billion. Analysts attribute this rebound in the off-plan market to strong government initiatives and increasing investor interest, with new technologies like virtual reality tours and blockchain enhancing transparency and efficiency.
The current trend of rising mortgage rates has shifted the focus towards off-plan investments. Higher rental yields offset the increasing costs of mortgages, making off-plan properties a more favorable economic choice. These investments allow for original pricing and flexible payment plans, making them more adaptable financially. Dubai’s population growth further bolsters this demand, making it an opportune time for investment in the off-plan market.
Original article reference: Zawya.