The Dubai property market shows no signs of slowing down, with new launches, particularly from major developers, continuing to sell rapidly. Projects by well-established local developers, known for their punctual and high-quality deliveries, are being snapped up within hours. Meanwhile, newer developers are also finding success, often selling out within weeks, if not days. The robust demand for properties from reputable developers is largely driven by the trust in their ability to deliver projects on time and with quality, offering buyers significant capital appreciation and double-digit rental income.
Newer developers are capitalizing on the lower prices and higher returns that the Dubai property market offers compared to other global cities. The 'Brand Dubai' effect, bolstered by strict regulatory oversight during construction, assures buyers that their units will be handed over. This confidence has led many developers to believe that the market will remain strong not just in the second half of 2024, but also throughout 2025.
Dubai's positioning as a global city, coupled with its reputation for security and growth, has fueled market momentum. The Golden Visa initiative has been particularly successful, attracting many who had never considered buying property in Dubai before. Amira Sajwani, managing director of Damac Properties, noted that Dubai remains significantly more affordable than cities like London, Paris, Hong Kong, and New York, ensuring continued growth.
Large-scale projects, such as Damac Properties' Dh1.2-billion Violet Phase 3, which sold 600 units in a matter of hours, underscore the strong demand. New project launches have been robust, with over 93,000 new units introduced across various sub-markets this year, marking a historic high. Major local developers like Emaar Properties, Nakheel, Damac Properties, Sobha Group, Samana Developers, and Danube Properties have been leading the charge.
Samana Developers' Dh660 million waterfront projects, Ocean Pearl 1 and Samana Ocean Pearl 2, sold out within two hours of launch. These projects, located on Dubai Islands, feature units with private pools, attracting buyers from around the world. Similarly, Aldar Properties' 'Athlon' project in Dubai sold out its first two phases within 48 hours, generating Dh4.1 billion in sales.
Newcomer Majid Developments reported that 40% of its first Dubai project was sold before its official launch, highlighting strong investor interest. Notably, a significant portion of buyers are now British and European, replacing some Asian investors. The UAE's Golden Visa has been a major draw, with developers often offering three Golden Visas to attract buyers.
According to Emirates NBD Research, Dubai has sold 104,250 units year-to-date, just 14,000 units short of the total transactions in 2023. The research anticipates that activity levels will remain stable for the rest of the year, setting a new record for residential unit sales in the city.
