The real estate research and data platform, Property Monitor, revealed that the real estate market in Dubai has witnessed an increase in the launch of new off-plan projects, with an average of more than one launch per day in 2024, with the rate reaching the launch of a new project every 18 hours.
According to the Dubai real estate market’s March report issued by the platform, “The preliminary numbers for the new off-plan projects launched last March show the addition of approximately 10,000 units to the market for sale over the course of the month, and these projects contributed to raising the total number of launches in the first quarter of This year, there has been an unprecedented number of 34,000 units distributed over 120 projects, with a new launch rate every 18 hours.
The report added that this tremendous level of activity in the market on the map does not show any signs of abating any time soon, and is likely to continue in the foreseeable future, and with the launch of the three new main complexes that we announced last month, in addition to the fourth complex, “Al Ghaf Forest” designed by Majid Al Futtaim, which will be launched soon, the options available to avid investors and eager end-users to choose from will only grow even greater.
The report continued that this abundant mix of projects and options may bring with it an increasing challenge for developers, as competition will be fierce, buyer expectations will be high, and greater scrutiny will be given in choosing the best investment.
Also, established and larger developers will be in a better position to tap the mass market through their price flexibility, and specialized developers who focus on the luxury and ultra-luxury sectors will also be in a position of strength, with fewer projects being launched and a focus on target markets.
New entrants to the market competing head-to-head with the aforementioned developer pool may have difficulty standing out and may need to return to offering traditional commercial offers skewed toward buyers, such as gifts, post-handover payment plans, and the developer paying DLD fees.
March Performance
The report pointed out that after several months of slight rise in prices, real estate prices in Dubai witnessed a significant rise in March, recording monthly gains of 2.37%, which is the largest monthly rise since May 2023.
According to the Property Monitor Dynamic Price Index (DPI), Dubai property prices currently stand at AED 1,325 per square foot, or 7.4% compared to the previous highest level and the market peak in September 2014.
This significant increase, and a break from the trend that began in late 2023, can largely be attributed to the significant differences in trading prices between existing homes and new off-plan properties.
Luxury Real Estate
The report showed that the market share of properties whose price exceeds 10 Million Dirhams increased to 2.7% last March, and the market share of properties whose price ranges from 5 to 10 Million Dirhams increased by 1.5%, reaching 6.3% of sales, and for properties whose price ranges from 5 to 10 Million Dirhams, Priced between 3 and 5 Million Dirhams, its share increased by 2.6% to reach 13.8% of market sales in March.