Dubai real estate market : Off-plan dominance fuels growth as three new master communities emerge in 2024

Dubai real estate market : Off-plan dominance fuels growth as three new master communities emerge in 2024

14 March 2024, ZAWYA

Dubai, UAE – As off-plan sales continue to dominate the market, Dubai is poised to witness the emergence of three new master communities in 2024, marking a significant phase of expansion for the emirate’s real estate sector.

Key Points:

As off-plan sales continue to dominate the market, Dubai is set to see three new master communities emerge in 2024—no better time than now.
Prices rose by 0.83% in February, signaling moderate yet consistent price appreciation.
The market witnessed its highest-ever sales transaction volumes for February, up by an impressive 30.4% year-on-year.
Mid-tier price points are experiencing notable market share growth, with Dubai Maritime City emerging as a sought-after waterfront location.
While mortgage activity saw a marginal decline, loans for new purchases gained strength, underscoring the enduring appeal of property ownership in Dubai.
Off-plan launches continue at full steam, with developers laying the groundwork for future developments.

Price Growth and Transaction Volumes Surge

According to recent data, property prices in Dubai saw a modest increase of 0.83% in February, with moderate price appreciation expected to persist. The market recorded its highest-ever sales transaction volumes for February, soaring by 30.4% year-on-year. Notably, mid-tier price points experienced market share growth, with Dubai Maritime City emerging as a popular waterfront location.

“The off-plan segment continues to be a driving force in Dubai’s real estate market, with new launches maintaining momentum. The announcement of three new master communities underscores the enduring appeal of Dubai’s property market for investors and end-users alike. While mortgage activity saw a marginal decline in February, loans for new purchases gained strength, indicating continued confidence in Dubai’s real estate market. The availability of financing options remains a crucial factor in driving property ownership in the emirate. “says Soliman Hossameldin, Director of Digital Marketing at D&B Properties.

Preliminary numbers for February indicate nearly 10,000 units added to the market for sale, predominantly apartments. Moreover, recent land sales hint at the forthcoming development of new master communities, with Emaar announcing two projects—The Heights Country Club and Grand Club Resort—alongside another community slated by DAMAC for May.

Optimistic Outlook with Cautionary Notes

Looking ahead, industry experts maintain an optimistic outlook, foreseeing sustained growth in property values with minimal risk of a market bubble. However, they caution that a phase of hyper-supply may follow the expansion phase, leading to fluctuations in prices—a natural cycle within real estate markets.

Continued Absorption and Attention to Key Indicators

Despite concerns about potential supply imbalances, the absorption rate remains robust, with both end-users and rental investors swiftly acquiring newly launched units. Speculative activity has not gained significant traction, primarily occurring for units nearing the 12-month handover mark.

In addition to off-plan resales, key data-driven indicators warrant careful attention in the coming months, including a notable deceleration in monthly sales transaction volumes and an uptick in developer incentives. These indicators could signal an impending market shift. The combination of off-plan dominance, new master community developments, and steady price appreciation signals a promising trajectory for Dubai’s real estate sector, with D&B Properties playing an integral role in shaping its future.

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