Over 80% of Dubai’s New Properties Sold Since 2022

Over 80% of new property units launched in Dubai since 2022 have been sold, showing a strong demand for off-plan projects in the emirate. Local and international developers have initiated real estate projects worth hundreds of billions of dirhams in Dubai since 2022. According to Dubai Land Department, 214 projects have been launched, with 148 currently active.

Taimur Khan, head of research for the Middle East at CBRE said that there’s been much discussion about the entries of new launches and their potential impact on prices, where supply might exceed demand. However, the absorption rate is high, with analysis showing at least 70% of units launched since 2022 have been sold. He also added that this figure is significantly higher in Dubai’s core residential areas, often exceeding 80%.

Post-pandemic, developers have rapidly sold their inventories, with some projects selling out within hours or a day.

Owner-Occupiers Driving Demand

Dubai’s residential market remains healthy, fueled by demand from end-users and residents purchasing property to avoid the steep rental market. High-net-worth individuals relocating to the emirate also contribute to this demand.

In May 2024, the total transaction volume reached 15,766, marking the highest monthly figure on record and a 44.2% increase from the previous year, according to CBRE. Property prices have also surpassed their previous peaks from 2014. Property Monitor reports that as of May 2024, prices stand at AED 1,360 per sq.ft., 10.25% higher than the market peak in September 2014.

Market Dynamics Shift

CBRE’s monthly report indicates a shift in market dynamics since 2019. Previously, most sales transactions were concentrated in Dubai’s core and prime residential areas, near business districts or leisure destinations.

Tatiana El Bazi, senior research analyst at CBRE, shared insights regarding recent data indicating a trend of buyers exploring opportunities beyond the city’s core and prime residential areas. This shift is influenced by the limited supply and the higher costs associated with acquiring real estate in these prime locations.

Original article reference: Khaleej Times.

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