Property developers in Dubai are persistently launching new projects, driven by the unwavering demand from end-users and tenants seeking to own property in the city. Whether new or established with a proven track record, developers remain confident in the market's continued performance, prompting them to unveil fresh developments. Initiatives such as the relocation of Dubai International Airport (DXB), the introduction of the new Blue Metro Line, and broader macroeconomic growth are expected to sustain the demand for property ownership in Dubai.
The influx of new residents, with Dubai's population increasing by over 140,000 in the first 11 months of 2024, has fueled an unprecedented surge in property demand, pushing prices and rents to new heights. This growth is further bolstered by the addition of over 100,000 new residents in the previous year, including affluent individuals and professionals. In the nine months leading up to September 2024, residential transactions exceeded 125,000, marking a 36% increase compared to the same period in 2023. Off-plan and ready property sales also saw significant rises, reaching Dh86 billion and Dh33 billion, respectively.
In just the past week, multiple new projects were announced by developers including Amwaj Development, Nabni Developments, Acube Developments, Kasco Developments, and Qube Development, among others. According to Betterhomes' third-quarter 2024 report, approximately 250,000 homes are currently under construction, poised to meet the future housing needs of the emirate. 'The market was hot over the summer, setting a new quarterly record with over 47,300 properties sold,' noted Richard Waind, CEO of Betterhomes. 'Off-plan sales dominated transactions, accounting for 66%, while secondary sales remained stable.'
In response to heightened competition, developers are increasingly offering attractive deals to entice buyers and tenants. For instance, Nabni Developments provides a 40% payment plan during construction and 60% upon completion, making their offers particularly appealing. Larger developers, who often sell out within days, offer even more favorable terms, such as 80% during construction and 20% upon completion.
Modern residential developments are also emphasizing environmental responsibility and energy efficiency, using sustainable materials that require minimal maintenance and offer long-term savings for residents. Developers like Nabni Developments are incorporating unique amenities inspired by Emirati culture, such as the Avenue Residence 7 project in Al Furjan, which features an Emirati-inspired facade and a range of community facilities.
Other developers, like Amwaj Development with The Cube Residences, are focusing on advanced home automation systems and co-working spaces, alongside traditional amenities like fitness centers and gaming rooms. Additionally, some developers are investing in local manufacturing to reduce costs, such as Acube Developments, which has launched an interior design and manufacturing facility to enhance their service offerings and benefit the broader real estate market.
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