Dubai’s off-plan real estate market is experiencing a record-breaking boom, with sales reaching AED90 billion ($24.5 billion) from January to May 15, 2025, according to data released by W Capital, based on figures from the Dubai Land Department.
The sector accounted for 38% of total real estate transactions in the emirate, with over 40,500 off-plan property deals closed in the first four and a half months of the year. This includes 36,359 residential units and 4,141 buildings, highlighting strong demand from both local and international investors.
In contrast, ready-built properties recorded AED147.4 billion ($40.1 billion) in transactions, making up the remaining 62% of the market.
W Capital CEO Walid Al Zarooni attributed the surge in off-plan investments to several attractive factors, including competitive pricing—typically 5% to 15% lower than ready properties—and flexible payment plans offered by developers. “Many investors are drawn to payment structures that require as little as 50% upon project completion,” he said.
High rental yields, reaching up to 7%, further enhance the appeal of off-plan properties, especially for those seeking stable long-term returns. Al Zarooni added that improved real estate financing options have also widened access, with banks increasingly offering special packages tailored to off-plan buyers.
Looking ahead, Al Zarooni expects continued growth in demand, fueled by Dubai’s population expansion and the rising need for new housing units. The emirate is targeting a population of 5.8 million by 2040, and large-scale government infrastructure investments are poised to support this trajectory.
“Modern real estate legislation and the proactive regulatory role of government entities have created a stable and secure environment for investment,” Al Zarooni noted. “Laws safeguarding investor rights and strict licensing regulations for off-plan projects have boosted transparency and market confidence.”
As Dubai continues to position itself as a global real estate hub, off-plan developments remain a cornerstone of its investment appeal—offering value, flexibility, and long-term growth potential.
