Off-Plan Sales Dominate Dubai’s Real Estate Market as Strong Investor Demand Continues into 2025

(MENAFN- Clickon Group Mena) Dubai’s Real estate market remains a global hotspot for investors, with off-plan transactions accounting for 63% of all property sales in 2024, up from 54% in 2023, according to Engel & Völkers Middle East’s latest report. The shift toward off-plan properties highlights the increasing demand for new developments, driven by competitive pricing, attractive payment plans, and limited supply in the secondary market.

Total residential sales transactions surged by 40.3% to 170,992 units in 2024, more than five times the number recorded in 2020, underscoring sustained investor confidence in Dubai’s property market. Apartment sales led the way, growing by 47.6% year-on-year and accounting for nearly 90% of the total market expansion, reflecting their affordability, strong rental yields, and appeal to both end-users and investors.

Palm Jumeirah, Downtown Dubai, and Dubai Marina continued to attract luxury buyers, while emerging developments like Palm Jebel Ali and The Oasis are driving new interest in off-plan projects, catering to high-net-worth individuals seeking exclusivity and long-term capital appreciation. In the ultra-luxury segment, sales of properties priced over AED 10 million rose by 20.5%, reaffirming Dubai’s position as a global destination for prime real estate.

"The continued dominance of off-plan sales reflects a clear shift in buyer preferences, with investors looking for properties that offer long-term value and flexible financing options," said Daniel Hadi, CEO of Engel & Völkers Middle East. "Developers are responding with innovative projects, while government-led initiatives, such as long-term visas and free zone expansions, further strengthen Dubai’s attractiveness as a real estate investment hub."

Dubai’s commercial property market also saw remarkable growth, supported by strong economic fundamentals and an increasing number of businesses establishing a presence in the city. With over 24,000 new business registrations in the first half of 2024, occupancy rates in DIFC, Downtown Dubai, and Business Bay climbed to 95-97%, leading to double-digit rental growth across the sector.

Office rents rose 11% year-on-year, while retail rents increased by 9.7% and warehouse prices surged by 21.1%, reflecting the increasing demand for high-quality commercial spaces. The tight supply of Grade A offices has prompted new development activity, including Aldar Properties’ upcoming project on Sheikh Zayed Road and further commercial launches this year.

As Dubai enters 2025, the city’s real estate market remains a key driver of economic expansion. Investor confidence continues to be fueled by rising property values, a thriving luxury sector, and the sustained momentum of off-plan transactions. With developers launching new projects to meet demand and regulatory frameworks supporting long-term investment, Dubai’s position as a premier global real estate destination remains stronger than ever.

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