Dubai: Over 80% of Property Units Launched Since 2022 Sold Out
Dubai’s real estate market has been booming since the pandemic, with more than 80% of property units launched since 2022 already sold out. This high demand for off-plan projects underscores the emirate’s vibrant real estate sector.
Local and foreign developers have launched projects worth hundreds of billions of dirhams since 2022. According to Dubai Land Department data, nearly 214 projects have been initiated, with 148 currently active.
High Absorption Rates
An impressive absorption rates of new stock, at least 70% of units launched since 2022 have been sold to date. Within Dubai’s core and established residential areas, this figure is well above 80%.
Khan highlighted that due to data lags, the actual number might be even higher. Developers have quickly sold their entire inventory post-pandemic, with some projects selling out within hours.
Owner-Occupier Demand
Dubai’s residential market continues to thrive, driven by owner-occupiers and residents looking to buy property to escape high rental prices. In May 2024, the total volume of transactions hit a record 15,766, a 44.2% increase compared to the previous year, according to CBRE.
Record Prices
Property prices in Dubai have also reached new heights. Property Monitor reported prices at AED 1,360 per square foot in May 2024, 10.25% higher than the previous peak in September 2014. Despite the increase in supply, demand remains strong, particularly from owner-occupiers, which is likely to sustain high sales prices while offering some relief to the rental market.
Shifting Buyer Preferences
Real estate consultancy CBRE’s monthly report highlighted a shift in buyer preferences. Since 2019, the bulk of sales transactions have moved away from Dubai’s core and prime residential hubs to newer areas. This shift is due to limited available and upcoming supply in established locations and the significantly higher costs associated with these areas.
