Sale of off-plan properties in Dubai’s real-estate market is picking up again after a quiet 2020 as developers are looking to cash in on strong market sentiment, according to a new analysis.

Over the last few months, Dubai has seen several developers unveiling projects, from apartments in high-rises to villas in premium neighbourhoods. The number of new launches made a sharp rise particularly during the last three months of 2021, according to Prathyusha Gurrapu, Head of Research and Advisory at property consultancy Core. 

“After a quiet [second quarter to fourth quarter of 2020] due to COVID-19 caused uncertainty, project launch volumes have seen a steady increase over 2021, and a particularly sharp rise in Q4 2021,” Gurrapu told Zawya. 

“Strong market sentiment, quick take-up from both investors and end-users due to UAE’s demonstrated positioning as a global investment hub, save haven and favourable tax, ownership and visa regulations, all factors are collectively underpinning the off-plan market,” Gurrapu added. 

Just last week, luxury property developer Omniyat announced it will build new “hanging villas” on The Palm Jumeirah, a premium development designed to attract the growing high-net-worth individual (HNWI) market. Months earlier, listed developer Union Properties unveiled the first phase of its $136 million Motor City Hills project which will feature more than 400 three-storey townhouse villas. 

The market is currently seeing renewed demand from buyers, with some off-plan projects selling out less than a month into their launch. Among those that have recently resumed off-plan launches, Samana Developers reported on Saturday that its “Waves” development, a mid-luxury residential project located in Jumeirah Village Circle that was launched early this month, has been sold out in two weeks. 

However, Gurrapu said that the number of project launches are still “considerably lower” when compared to 2015-2019 levels. The new trend also doesn’t mean that the market will soon be facing a supply glut. 

“Most of these project launches are expected to be delivered in a phased manner over the next three to five years, [so] it is potentially not an oversupply issue yet.” 

“Furthermore, we foresee strong demand for prominent off-plan launches, particularly in the prime and ultra-prime segments, reflected by strong transaction activity and rising sales prices in both off-plan and secondary markets,” Gurrapu said. 

(Reporting by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@lseg.com