Slight drop in off-plan property prices as investors move to ready properties

Slight drop in off-plan property prices as investors move to ready properties

Off-plan property prices in Dubai dipped in August after a strong rally that saw prices rising at a double-digit rate over the past few years as investors are moving towards ready-to-move-in properties.

However, analysts said that the drop in prices is not a reflection of the market's weakening but “recalibration towards price equilibrium,” and off-plan properties remain the preferred option for investment in Dubai.

According to Emirates NBD Research, 10,470 units or 66 per cent of the total transactions in August were off-plan properties. While the overall demand and market sentiment across the city has improved over the last few years, the off-plan segment has seen the biggest jump in transaction volumes. To put this in context, in 2018 a total of 17,600 off-plan units were sold across Dubai while more than 69,100 off-plan units have already been sold in the year through August 2024. At current transaction levels, Emirates NBD Research sees more than 100,000 off-plan transactions for the full year, around a 468 per cent jump in transaction activity compared to 2018.

Rising demand for ready properties

Additionally, existing properties saw a 30 per cent increase in transaction volume in Q1 2024 compared to the same period in 2023, reflecting the rising demand for ready homes. Meanwhile, the off-plan market maintained stability with a modest 5 per cent increase in transaction value, indicating that while it is still appealing, it is no longer the primary focus for many investors seeking quicker returns.

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