Authorities said the Adani Group chairman and seven other defendants agreed to pay the bribes to Indian government officials to obtain contracts expected to yield $2 billion of profit over 20 years
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Most off-plan property sales in Dubai involve units that would be completed within a year, as these properties offer investors the highest returns.
Industry insiders report that many end-users who initially bought off-plan units intending to reside in them are also choosing to sell, driven by the substantial returns such assets yield. Off-plan sales now dominate Dubai’s property market, accounting for more than half of all sales in the emirate.
In the first 9 months of 2024, according to CBRE, the total number of residential transactions topped 125,000, up more than 36 per cent from close to 93,000 during the same period in 2023. The weight of growth has been due to rising off-plan transactions, which are up over 50 per cent on the same period last year, with no obvious slowdown in activity levels for new sales launches.
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“The majority of off-plan resales these days are for properties that are within 12 months of completion. We understand that a significant proportion of these are sold by owners who originally purchased their property to live in it once handed over, not to sell for a higher price further down the line,” said Zhann Jochinke, chief operating officer, Property Monitor.
Lewis Allsopp, chairman of Allsopp & Allsopp, says that as developers continue to try to meet the market's demand, 22,555 off-plan unit launches occurred in the third quarter.
Allsopp & Allsopp’s third-quarter market showed that off-plan sales accounted for 56.5 per cent of market activity in Dubai, fuelled by unprecedented demand and a lack of supply of readily available property.
Allsopp said the surge in supply continues to be met with a stronger demand – making off-plan properties particularly attractive for investors, especially during the construction phase.
“This is partly due to off-plan developments offering more attractive pricing and flexible payment plans compared to completed units. Property value also typically rises during construction, creating further opportunities for quicker and more profitable resales soon after completion. This potential for strong returns is fuelling a surge in off-plan resales, with investors capitalising on rising property values and favourable market conditions,” he said.
“Upon completion, the value of off-plan property will usually peak due to the offer of immediate occupancy, elimination of any uncertainty around delay or project quality and of course, market growth and increased demand.
“Coupled with the current supply shortage, this makes move-in-ready homes even more desirable, driving up their value. Essentially, properties sold within one year of handover often sell for more because they're new, have likely gone up in value, and are ready to move into,” said Allsopp.
Zhann Jochinke of Property Monitor ruled out that investors are still flipping to make the most of their investments and causing a bubble in the market.
He said that the days of speculative, quick flips that were experienced in the mid-2000s are long gone, thanks to a more mature market, more informed investors and self-regulating controls by developers.
“Speculative flipping has also been dramatically reduced because of sales terms imposed by developers: in some cases, up to 50 per cent of the total property payment must be made before any subsequent transactions are permitted. These policies act as a self-regulator for the industry,” said Jochinke.
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