A report issued by CBRE, a real estate consulting company, revealed that the real estate sector in Dubai has witnessed the sale of 80% of the new units launched in Dubai since 2022, while the strong demand for off-plan real estate projects in the emirate continues.
Since 2022, Dubai has witnessed the launch of a large number of diverse real estate projects by local and foreign developers, according to data from the Dubai Land Department, where 214 new projects were launched, 148 of which are still under construction.
After the COVID pandemic, many developers sold their entire stock of real estate in a relatively short period of time. Some of them even succeeded in selling their projects in one day, while others sold them within hours.
Dubai’s residential real estate market is witnessing exceptionally high demand, driven by end-users and residents looking to buy their own homes, as well as the large influx of wealthy people to live in the emirate. According to CBRE Real Estate Consulting, the total volume of transactions last May, the highest monthly number recorded, reached 15,766 transactions, an increase of 44.2% over the previous year. Likewise, prices exceeded their previous highest levels witnessed in 2014.
According to the real estate index, prices reached 1,360 dirhams per square foot in May 2024, an increase of 10.25% from the previous record high price and the highest market value reached in September 2014. According to the monthly report issued by CBRE, market dynamics have witnessed a noticeable shift since the year 2014.2019, as the main focus of sales transactions was previously in the prime and upscale residential areas of Dubai which were historically located around the various central business districts or entertainment destinations of Dubai.
Taimur Khan, head of research for the Middle East at CBRE, said: The data showed that the new units launched are being sold at significantly high rates, as our main analysis shows that at least 80% of the units that were launched since 2022 has been sold out so far. Khan continued: According to the available information, we see that a large portion of this demand in the off-plan real estate market comes from property owners for housing purposes, and therefore, in the long term, we expect that increased supply will ease some pressure on the rental market, but with regard to selling prices, it is This is unlikely to create a decline in prices.
For her part, Tatiana Al-Bazi, senior research analyst at CBRE, said that recent data indicates that buyers are moving away from the main and upscale residential areas of the city.