Off-plan deals in Dubai have surged in the first six months of 2024. Overall, the Dubai real estate market has seen sales transactions reach AED 103.8bn in the first six months of 2024.
Transactions of off-plan Oqood (contract) registrations grew by 61.4% YoY and 19.1% QoQ,
equivalent to investments worth AED 59.9bn
The average ticket size of off-plan homes fell 10.5% annually to AED 2.4m. The citywide average transacted price for off-plan properties was AED 19,515 per sqm (AED 1,813 per sq ft)
Top off-plan locations transacted during the quarter included projects located in Jumeirah Village Circle (11.5%), Business Bay (6.9%) and Meydan One (6.5%).
Investor confidence is bolstered by Dubai’s regulatory framework. This ensures transparency and protects the interests of both buyers and developers.
The Dubai Land Department’s tough regulations and the introduction of escrow accounts for off-plan projects are crucial in maintaining market integrity and creating a secure investment environment.
What are off-plan properties?
Off-plan properties are pre-construction or properties that are currently under development and are not yet completed.
As we have reported investment in off-plan projects is more trending over the past few years. It seems that potential investors are showing more interest in these types of properties.
The developers in off-plan projects offer flexible payment plans in which investors have to pay the total amount in different steps.
Initially, the investor has to pay 10% to 15% of the total amount, so a substantial off-plan project is accessible with low investment in hand.
By landing a property in Dubai off-plan, it is hoped that when you are finally given the keys, the property price gets an immediate boost.
The off-plan growth comes as the Dubai real estate market has shown impressive growth and resilience in recent months, according to the Real Estate Research Second Quarter 2024 report, from ValuStrat.
Their Price Index for Residential Capital Values increased by 6.4% quarterly and 28.2% annually, reaching 178.2 points.
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