Q1 2024: Dubai property sees new project started every 18 hours

New developments average more than one per day in the first quarter of 2024, as the Dubai property market experiences an influx of project launches. According to recent data from Property Monitor, nearly 30 new off-plan projects were introduced in March alone, contributing around 10,000 new units to the market.

The first three months of 2024 witnessed a total of 120 project launches, introducing a total of 34,000 units. Zhann Jochinke, director of marketing and research at Cavendish Maxwell, notes they are seeing a new launch every 18 hours – a clear indicator of the strong flow of activity within the off-plan sector. He further pointed that this trend is expected to persist, with over 100 projects currently in the planning stages across various master communities.

Fueled by the confidence of international investors and comparatively lower prices than those found in major global cities, the allure of Dubai’s property market continues to grow. Among the launches this year are Emaar Properties’ AED 55 billion Heights Country Club and AED 41 billion Grand Club Resort, along with several others from both local and international developers.

March also saw a 14.7% increase in transactions, totaling 13,664, marking the second-highest monthly sales volume on record. Notably, residential transactions (including apartments, townhouses, and villas), constituted 92% of these sales, with off-plan Oqood transactions also peaking at 7,768—an increase of 21.7% from February.

However, the influx of new projects also presents challenges, particularly for new developers. Jochinke explains that the abundance of options could pose challenges in a fiercely competitive market where buyers’ expectations are high. Established developers are still likely to dominate the mass market, while niche players in the luxury segments might find more success focusing intensely on their specific niche. For newer developers, distinguishing themselves might require adopting more buyer-friendly commercial terms, such as bonuses, deferred payment plans, and covering transfer fees.

Original article reference: Zawya.

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