Dubai Property Market Blooms In Q1 2024 - Launches 1 Property in Every 18 Hours

In Q1 of 2024 Dubai property market witnessed massive property launches, with an average of one property each day. These launches are not only from the local but from foreign developers as well. This has completely disrupted the Dubai property market, and real estate is forecasting more of such progressions.

Dubai property market blooms in Q1 2024

As reported by Khaleej Times 120 projects were launched in Q1 of 2024 in Dubai, with 34,000 units offered. Let’s discuss how the figures for property launches are changing every 18 hours. 

Dubai's real-estate Market is Transforming

A high level of activity is observed in the market and is not showing any signs of decline shortly. Investors are eager to know what is being unfolded every 18 hours, to make the right choice of funding investment. Following are some of the new launches which made the buyers curious about the facilities, architecture, location and primarily payment plan of these projects.

• Sonate Residences at JVT
• Greenway at Emaar South
• Hillmont Residence at JVC
• Cala Del Mer at Marjan Island

Massive Off Plan Property UAE Launches – Reasons?

Following are some of the reasons, developers are launching properties quickly and demand of buyers is increasing:

• Dubai is currently absorbing numerous off plan properties in UAE that are redefining luxury living.

• The demand for the property in Dubai is staggering with a high level of trust in developers. If an individual wants to buy property in Dubai they are exceptionally confident.

• Properties offer exclusive amenities and connectivity to the city, leading to a comfortable life.

• Buyers are demanding property in high numbers due to lower interest rates and easy payment plans.

Dubai Property Market is Facing Challenges! – Is this Real?

With such a massive number of properties being launched every 18 hours, various challenges are being faced by the developers. 

• Offering Flexible Payment Plans

The first challenge for the developers is to continue to offer flexible payment options which is becoming difficult with the high competition. Otherwise, if developers are not offering suitable plans, they have to sell the property in Dubai with post-delivery payment plans, property fee flexibility and other options.

• Coping up with the Buyer’s Expectations

To understand this challenge of coping with the buyer’s expectations due to the massive number of properties being launched every 18 hours, the following statement by Jochinke will elaborate:

“This plentiful buffet of projects and the choice that comes with it may present an increasing challenge for developers, as competition will be fierce, buyer expectations high, and greater scrutiny given in selecting the best investment.”

He further added:

“Well-established and larger developers will be best positioned to capitalise on the mass market across the majority of price points, while niche developers that focus on the luxury and ultra-luxury segments will also be in positions of strength, with fewer projects launched and a laser focus on their target markets,”

Real estate is warning that if the same trend of launching properties continues will lead to uncontrollable competition. Following this trend of offering off plan properties for sale in UAE, will push the developers to practice the traditional way of property offering with other flexible payment plans. 

March Performance – Groundbreaking Sales

The trend of property launches every 18 hours has projected its implications on real estate in Dubai. As highlighted by Property Monitor’s Dynamic Price Index (DPI), the existing price of the property stands at AED 1,325 per sq. ft. This has also indicated the 7.4% increase in the sale.

Only in March 2024, an impressive 7,768 off-plan Oqood (Contract) transactions were documented in Dubai with a 21.7% increase from the previous month. 

Luxury Property in Dubai – Warning from Real-estate Experts

The analysis also showed that the market share of the luxury property market is also growing including properties above AED 10M, the percentage of the market share increased by 2.7% in March 2024. Property in the range of AED 5M and AED 10M accounted for 6.3% of the sales. However, if investors or buyers want to buy an apartment in Dubai in the range of AED 3M, and AED 5M, they will also remain in benefit, as the market share of this range saw an upsurge of 13.8% in March.

Conclusion

As the Dubai property market is blooming with all its prestige in the Arabian Gulf, it is significant to understand this progression. For the buyers, this trend is beneficial from most of the spectrums. On the other hand, with the unstoppable and continuous launches of the properties in Dubai, Developers are facing the challenge of intense competition. Developers are forced to offer flexible payment and also to cope with the buyer's expectations in different aspects of facilities, amenities, architecture, design and luxury living. By understanding this trend of intense launches, both buyers and developers can make the right decision.