Dubai property projects sold ‘in minutes’; nearly 90% of sales come from first-time buyers

Dubai’s real estate market is experiencing unprecedented demand, with property projects from Tier 1 developers being sold out within hours, if not minutes. This trend underscores the emirate’s strong appeal among both local residents and international investors. Developers are launching new projects at regular intervals to meet the high demand, leveraging the booming market to attract buyers.

Expat and Overseas Buyers Leading the Market

Expat residents and overseas buyers dominate the market, accounting for 83 percent of sales. Indian, Egyptian, and British passport holders are the top three international markets by sales volume, highlighting the global interest in Dubai’s real estate sector. The remaining 17 percent of sales are attributed to UAE nationals.

Tier 1 Developers’ Edge

Tier 1 developers, such as Meraas, Dubai Holding, Emaar Properties, Nakheel, and Damac Properties, hold a significant advantage in the market. Their strong brand equity, proven track record, and prominent locations attract a large network of brokers, who facilitate most of their sales. Additionally, banks offer mortgages for off-plan properties in these developers’ projects, making them more accessible to buyers.

Unique Projects Drive Rapid Sales

Projects that offer unique features and stand out from the competition tend to sell out quickly. For instance, Meraas recently sold out a project within 45 minutes, and Aldar Properties sold its project in Dubai within 72 hours. However, not every project from Tier 1 developers sells out immediately. Ultra-luxury projects with high price tags often take longer to sell due to their niche market.

Recent Success Stories

• Meraas’ Verve City Walk: This project sold 427 units in just 45 minutes, with the penthouse fetching Dh30 million.
• Aldar Properties’ Verdes by Haven: Aldar sold over 660 units within 72 hours, generating over Dh1 billion through sales events at the Dubai World Trade Centre, Aldar Square in Abu Dhabi, and an international roadshow that visited six different markets worldwide.

Diverse Buyer Demographics

First-time buyers are a significant force in the market, accounting for nearly 90 percent of sales. The market also features a diverse demographic:

• Expat and Overseas Buyers: 83 percent of sales, with Indian, Egyptian, and British buyers leading.
• UAE Nationals: 17 percent of sales.
• Gender Distribution: Female buyers represent 28 percent of sales, while male buyers account for 72 percent.
• Age Distribution: Around 56 percent of buyers are under the age of 45, indicating a youthful market.

Market Maturity and Selective Buyers

The abundant supply of residential property in Dubai is leading to a more selective buyer market, a sign of maturity in the real estate sector. Buyers and investors are becoming more discerning in their choices, evaluating projects and individual units carefully.

Competition and Unique Selling Points

The competition among developers is intensifying, with unique selling points becoming crucial for standing out in the crowded market. Projects that differentiate themselves with distinctive features and strategic planning tend to achieve rapid sales success.

Importance of Payment Plans

Payment plans are particularly important in the current environment of high borrowing costs. Flexible payment options are a significant draw for buyers, making properties more affordable despite high property values. The total ticket price per unit is becoming more significant than the price per square foot, reflecting buyers’ focus on overall affordability.

Diverse Nationalities and Interest

The market benefits from a strong mix of international investors, making it less dependent on any single nationality. Certain projects attract higher interest from specific nationalities. For example:

• NAS Gardens: High interest from Indian, Asian, Arab, Iranian, and Russian buyers.
• Seafront Projects: High European presence and interest from various other nationalities.

In summary, Dubai’s property market is characterized by rapid sales, a diverse buyer demographic, and a competitive landscape where unique projects and flexible payment plans are key to success. The market’s maturity is evident in the selective nature of buyers and the strategic approaches of developers.

Reference: Khaleej Times