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Dubai: Nearly 40,000 new off-plan units likely to be launched in last 4 months of 2024

This will take the property market's tally to nearly 126,000 new units launched this year

Published: Sun 29 Sep 2024, 1:20 PM

Updated: Sun 29 Sep 2024, 9:41 PM

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Photo: WAM File

Photo: WAM File

Dubai property market will see a strong pipeline of new project launches as nearly 200 additional projects are in the pipeline by different developers.

New project launches reached nearly 86,000 units in the first 8 months with an aggregate sales value of Dh213.7 billion. The figures are said to be well on track to surpass last year’s Dh272 billion, according to the latest Property Monitor report released by Cavendish Maxwell.

“With nearly 200 additional projects in the planning phases being tracked by the Property Monitor team, we anticipate that new launches will maintain their historically high levels throughout the remainder of 2024 and for a further 35,000-40,000 units to enter the off-plan market."

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"A significant growth of new development activity across myriad pricing segments and communities is expected, particularly for apartments in Dubai Islands, Jumeirah Garden City, Dubai Maritime City, Motor City, and Dubai Land Residence Complex, as well as single-family units — townhouses and villas — in The Valley, The Acres, The Oasis, and The Height Country Club,” according to the report.

Dubai has also seen many foreign developers foraying into the city in the past two years to cash in on unprecedented demand for off-plan properties from residents and investors. The prices and rentals have also spiked as the population of the emirate increased substantially, reaching 3.781 million.

In August, the total volume of sales transactions increased 0.28 per cent, reaching a total of 16,145 transactions marking not only the highest-ever August volume but also the second-highest month on record overall.

“This continues the trend of record-setting months, in fact, every month in 2024 with the exception of April, has achieved its highest-ever transaction volumes for the respective month,” the Property Monitor report said.

Similarly, property prices continued climbing to all-time highs, reaching Dh1,431 per square foot. The prices are now 82.4 per cent above the market trough of April 2009 and 16.03 per cent above the peak of September 2014.

“Absent any significant economic, geopolitical, or unforeseen global events, current market conditions are likely to provide for continued growth throughout 2024. On a year-on-year basis, prices have increased by 17.7 per cent in August and now marks 42 straight months of year-on-year increases, while on a year-to-date basis, prices have increased by 11.5 per cent in August 2024 compared to 10.9 per cent in August 2023,” said Cavendish Maxwell’s report.

“Dubai’s property market continues to show strong momentum with notable price growth. The surge in off-plan project sales is a significant driver, while high transaction volumes reflect sustained buyer confidence, despite the temporary dip in mortgage activity,” said Zhann Jochinke, director of market intelligence and research at Cavendish Maxwell.

Sales transaction volumes in August reached 16,145, increasing marginally by 0.2 per cent compared to July 2024. During the month, the split between Oqood and Title Deed property transactions was weighted in favour of the former, with Oqood registrations accounting for 64.8 per cent of all transactions, up by 6.5 per cent month-on-month, it said.

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