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Dubai Off Plan Property: A Shift Towards Existing Properties in Q1 2024

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Dubai’s real estate market continues to thrive. Over 36,000 property sales transactions were recorded in the first quarter (Q1) of 2024. This impressive figure reflects a 17% year-on-year increase compared to Q1 2023. Interestingly, investor preferences in this booming market have a noticeable shift, particularly regarding off plan property.

Surge in Existing Property Sales

Off Plan properties traditionally attracted Dubai investors with potential capital appreciation during construction. However, Q1 2024 saw a surge in demand for existing, ready-to-move-in properties. Existing property transactions reached nearly 19,600 units, representing 54% of total sales volume. This is a significant rise compared to Q1 2023, where existing properties accounted for 48% of transactions.

The existing property market also saw a noteworthy 30% growth in transaction volume compared to Q1 2023. The total value of existing property sales transactions reached an impressive AED 78.2 billion, contributing a substantial 68% of the overall sales value, up from 60% in Q1 2023. This significant increase suggests investors are prioritizing immediate occupancy or rental income generation.

Off Plan Market Shows Stability

Dubai’s off plan property market remains stable, though experiencing a different growth than existing properties. There were approximately 16,600 off plan transactions in Q1 2024, representing 46% of the total volume. 

The total value of off plan transactions also saw a modest 5% rise, reaching AED 37.4 billion. Off Plan properties can still attract investors seeking lower entry points and higher returns upon completion.

Opportunities for Developers and Brokers

The shift towards existing properties presents exciting opportunities for developers and brokers. By adapting their strategies and focusing on the growing demand for ready-to-move-in options, they can redefine success in the 2024 market. 

Established brokerages like One Broker Group can leverage their expertise in existing and offplan properties to guide investors toward the most lucrative opportunities. 

Their advisors can help investors navigate the complexities of both existing and offplan property purchases. This ensures informed decisions aligned with their financial goals.

Overall Market Strength

The robust sales figures showcase the overall strength of Dubai’s real estate market. The high transaction volume and significant increases in existing and offplan property values paint a positive picture for investors seeking to invest in Dubai. Dubai’s reputation as a global business hub and tourist destination continues to attract investors seeking a stable and potentially high-growth market.

Considering Off-Plan vs. Existing Properties?

This data highlights a critical trend for investors. While offplan properties offer potential capital appreciation during construction, they come with certain imperils like project delays or market condition changes. Existing properties provide immediate occupancy and rental income generation but may offer different potential for capital appreciation. Investors should weigh their goals and risk tolerance when making a decision. 

Dubai’s property market continues to evolve, presenting lucrative opportunities for informed investors. Whether you prefer existing properties or are drawn to offplan developments, Dubai offers a dynamic and exciting real estate investment market. By carefully considering your goals and seeking expert guidance, you can make well-informed decisions and invest in Dubai without hassle.

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