As Dubai’s real estate market defies global trends and sets new records in property transactions, DHG Properties, a renowned Swiss property developer with 30 years of experience, comments on why they believe the off-plan market is spearheading this remarkable growth. With increased incentives and benefits for international investors paired with Dubai constantly hosting the world’s biggest events, DHG Properties sees the future as being quite bright for the UAE real estate market.

According to research conducted by one of the world’s leading property agents, Savills, real estate transactions surged by an astounding 44% in the first half of 2023, reaching nearly 60,000 units. This not only indicates an astounding 209% increase compared to the five-year average for this period but also underscores Dubai’s enduring appeal as a stable investment destination. The shift is so significant that even traditionally sluggish summer months are witnessing robust market activity.

This year is on track to be the busiest for the residential sector in Dubai. A total of 57,700 units have been transacted across the city during the first half of 2023, a growth of 12% compared to H2 2022 and 44% versus H1 2022. A key driver of this market growth is the resounding success of the off-plan market segment, which constituted nearly 53% of all units sold in the first half of the year. Buyers are increasingly turning to off-plan properties as a means to navigate the current economic landscape and avoid committing to high lending rates. The surge in demand is reflected in the increase of new project launches and developments emerging all over the country.

Although property prices have been steadily rising, the pace of growth has slowed slightly in certain areas due to planned supply increases. However, this trend has not hindered the attractiveness of strategic investment opportunities, especially within the off-plan market. Emerging locations such as Jumeirah Village Circle (JVC), Al Furjan, Sports City, and Town Square have all witnessed price value growth, albeit marginal, and hold potential for future appreciation.

Dubai is set to bring even more attention and foreign investment to the region with the UN Climate Change Conference, COP28, taking place later this year and more than 70,000 people expected to attend. His Highness Sheikh Mohamed bin Zayed Al Nahyan, UAE President, has mentioned a similar sentiment on the conference, “We look at this [COP28] as an opportunity for innovation, and a chance to find new solutions and diversify our economy.” With the wise leadership of the country having this top of mind, the UAE economy is set to thrive including the real estate sector.

This surge in Dubai’s real estate market has revealed a shifting landscape in consumer behavior. Buyers are increasingly inclined towards off-plan properties, drawn by the flexibility they offer in a dynamic market and the investment incentives for a bigger ROI. This trend aligns with the rising preference for flexible payment plans, which are instrumental in attracting a wider range of investors.

Blagoje Antić, Founder and Director of DHG Properties commented, “We are thrilled to witness the unprecedented surge in Dubai’s real estate market, reaffirming our belief in the immense potential this dynamic city holds. The remarkable growth in property transactions, especially within the off-plan market, aligns perfectly with DHG Properties’ vision of offering affordable yet premium investment opportunities to investors. Experienced investors and first-time buyers benefit from the lower prices and greater financial flexibility offered by off-plan properties. With the numerous projects that are announced every month in Dubai, developers compete primarily on prices, which is of particular interest to buyers.”

Dubai’s real estate market remains a beacon of stability and growth in a volatile global economic landscape. The surge in property transactions, particularly within the off-plan market, signifies Dubai’s resilience and adaptability to changing consumer preferences. As Dubai continues to attract new markets and evolve alongside its consumers, the real estate industry stands poised to achieve new heights of success.