Dubai’s off-plan property market is on the path of a V-shaped recovery thanks to renewed investor confidence. This trend is expected to continue in the coming months, according to a property analyst.
Demand for off-plan units has picked up recently after a year-long period of sluggishness, fuelled further by developers launching new projects and a huge influx of tourists coming for the Expo Dubai 2020.
According to the latest data compiled by Property Finder, the value of off-plan sales transactions jumped by 47.11 percent in the third quarter compared with the previous quarter, while the ready market posted only a 4.24 percent increase in the value of sales over the same period.
In terms of volume, off-plan sales transactions also jumped by 14.67, while the secondary/ready property sales transactions fell by 6.02 percent.
“The off-plan market, after facing headwinds over the last 18 months and witnessing significant contractions due to market uncertainty has seen a V-shaped recovery, signalling a return to pre-pandemic levels,” Robert Thomas, head of agency at property consultancy firm CORE, told Zawya.
Off-plan sales will rise
Thomas noted that there has been a “robust absorption” of existing off-plan inventory in Dubai over the last two to three quarters, showing a strong improvement compared to a slower take-up in 2020.
“While the preference for the ready stock is expected to continue, we also foresee off-plan activity continuing to gather pace as investor confidence and appetite steadily return to the market. Developers are also expected to further entice buyers with post-handover payment plans and flexible payment terms.”
Dubai has recently seen new project launches, including Union Properties’ Motor City Hills and Motor City Views, which are expected to deliver 415 townhouse-style villas and 880 apartments, respectively. Listed developer Emaar Properties is also currently developing several projects in Dubai, while DAMAC Properties has announced plans to develop a $545 million tower with Italian fashion house Cavalli.
Lynnette Sacchetto, director of research and data for Property Finder said earlier that the Expo Dubai 2020 will drive further improvement in off-plan sales. The expo had registered more than 400,000 visits during the first ten days of opening.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
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