Over 80 percent of the new real estate units introduced in Dubai since 2022 have been fully sold, indicating a persistent high demand for off-plan projects in the emirate. Since 2022, both local and international developers have initiated real estate ventures worth hundreds of billions of dirhams. Dubai Land Department statistics reveal that close to 214 projects have been initiated, with 148 currently active.
Taimur Khan, head of research for the Middle East at CBRE, noted that despite concerns about the potential impact of new launches on prices, the absorption rate for new units is significantly high, with at least 70 percent of units launched since 2022 already sold. Khan further highlighted that in Dubai’s established residential areas, this figure averages well above 80 percent.
Post-pandemic, several developers have managed to sell their entire inventories rapidly. Some projects were sold out within a day, and a few even within just a few hours. The majority of buyers are owner-occupiers, driven by the desire to own property to escape the competitive rental market and the influx of high-net-worth individuals moving to the emirate.
In May 2024, the total number of transactions reached 15,766, the highest monthly record to date, marking a 44.2 percent increase from the previous year, according to CBRE. Property prices have also exceeded previous peaks seen in 2014. Property Monitor reports that prices in May 2024 stood at Dh1,360 per square foot, a 10.25 percent increase over the previous market peak in September 2014.
Khan added that a significant portion of the demand in the off-plan market comes from owner-occupiers, suggesting that while increased supply might alleviate the rental market, it is unlikely to exert downward pressure on sales prices. CBRE’s monthly report indicates a shift in market dynamics since 2019, with sales transactions now spreading beyond Dubai’s core and prime residential areas.
Tatiana El Bazi, senior research analyst at CBRE, explained that this shift is due to the scarcity of available and upcoming supply in established locations and the significantly higher costs associated with acquiring real estate in these neighborhoods.
