UAE - Off-plan sales transactions in Dubai rose by AED30 billion ($8.17 billion) in the second quarter (Q2) of 2023 compared to Q2 2020, as the existing total residential supply in the emirate is about 517,849 units at the end of H1 2023.
An additional 142,644 units are reportedly under construction, said ZāZEN Properties, a Dubai-based and leading sustainable property developer in the UAE.
With Dubai’s population on pace to triple by 2025 from the 1.3 million in 2005, residential supply has ballooned, especially in recent years. Industry analysis indicates that a total of 60,000 units are meant to be delivered in 2023, with about 20,000 of these already completed. Furthermore, close to 80,000 units will be introduced to the market in 2024 and 2025.
The UAE government has elevated its profile by working diligently to bolster the appeal of its Golden Visa programme, accelerate the realisation of green mandates like the Dubai 2040 Urban Masterplan and UAE Net Zero 2050, and introduce new initiatives such as the Dubai Economic Agenda (D33) to propel the economy.
These efforts are not going unnoticed, as overseas investors from Europe, and more recently China, are migrating to the UAE in increasing numbers and investing in the country to safeguard their assets.
The off-plan sector has been a key beneficiary due to its affordable barrier to entry and because newer developments are increasingly aligning with the UAE’s sustainable agenda; boosting potential return on investment (ROI).
An example of this includes the first LEED Gold-certified project that will be delivered in the first half of 2024, reinforcing the notion that such innovation is contributing to eye-popping sales in the off-plan segment.
Madhav Dhar, ZāZEN Properties’ COO and founding member, commented: “Off-plan real estate, especially when under construction, is significantly more affordable when compared to ready properties - this is proven through history as there is a high probability of capital appreciation near completion. With our sold-out ZāZEN Gardens project in Furjan, we have already seen investors resell their units for a 20-25% premium within four months of purchase.
“With the UAE hosting COP 28 later this year, leading a sustainable revolution within the region, and the economic growth plans for the country going forward, off-plan projects will only increase in value. Developers must continue prioritising sustainability in new developments as it will be profitable for them, economical for end-users, and beneficial to the government’s vision for the environment; it’s a win for all parties involved, including the environment.”
Real estate innovation
With Dubai relying on real estate innovation to usher in a new era of sustainability, ZāZEN Properties is doing its part to future-proof the economy. The homegrown brand’s latest development, ZāZEN Gardens in Al Furjan, will become the first LEED Gold-certified and Well-Being integrated residential development in April 2024.
Annually, it will reduce 469 metric tonnes of carbon emissions and generate close to 390,000 kWh of onsite solar electricity, which is about 30% of the common area requirement yearly. ZāZEN Properties is committed to continuing to add to the sustainable landscape of Dubai, providing a better future for the UAE.
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