Dubai’s real estate market is experiencing a shift as off-plan property sales surge, particularly for units approaching completion. According to recent data from CBRE, residential transactions have reached record highs, with over 125,000 units sold in the first nine months of 2024—up 36% compared to the same period last year. Off-plan transactions alone saw an increase of over 50% year-on-year, solidifying Dubai’s status as a dynamic real estate market with robust investor interest.
Many end-users, who originally intended to occupy these off-plan properties upon completion, are now choosing to resell, lured by the attractive returns generated during construction. Zhann Jochinke, COO of Property Monitor, highlights that the majority of these resales are for properties within a year of handover, offering investors immediate returns without long-term holding periods.
The shift toward off-plan sales, accounting for 56.5% of market activity in Q3, has also been fueled by limited availability of ready-to-move-in units. Developers launched 22,555 new units in Q3 alone to meet escalating demand, but supply constraints remain a challenge. According to Lewis Allsopp, chairman of Allsopp & Allsopp, off-plan units often come with competitive pricing and flexible payment options, further boosting their appeal among investors.
In addition to favorable financial terms, property values tend to appreciate throughout construction, creating an opportunity for resale at higher prices just before handover. Allsopp notes that once completed, these units can fetch a premium due to immediate move-in readiness, enhanced market value, and reduced risk of project delays or quality concerns.
Importantly, today’s market is markedly different from the speculative “flipping” seen in the mid-2000s. Investors are no longer aiming for quick resales, and new developer policies—requiring up to 50% payment before a unit can be resold—help curb speculative flipping, fostering a more stable market environment. As the city’s skyline grows, Dubai continues to attract global investors eager to capitalize on its strategic real estate offerings.
