The value of off-plan sales deals in Dubai reached its highest level in over eight years.

13/10/2021

In the third quarter of 2021 alone, the Dubai off-plan market recorded 6,909 transactions worth Dh13.5 billion, making it the highest off-plan sales in 8 years. According to Lynnette Sacchetto, the director of research and data at Property Finder, “Off-plan sales started to increase considerably in 2021 and the amount of sales transactions between secondary and off-plan are now about 50/50. This is evident that investors see the value in investing in the future of Dubai”.

 

Furthermore, in the third quarter of 2021, Dubai's real estate market achieved a new milestone, as it became the best third quarter in the emirate's history in terms of the transaction value. The Property Finder's latest figures for the third quarter of 2021 show that the total value of transactions reached Dh42.35 billion in 15,926 transactions. The volume of sales transactions grew 85.36% in the third quarter of 2021 compared to the third quarter of 2020, while the value increased 135.4%, making it the best third quarter for sale transactions volume in over 11 years. And when compared to pre-covid periods such as Q3 2019, Q3 2021 showed a 64.51% increase in volume and a 138.81% increase in value.

 

During the Q3 of 2021, the off-plan market transacted 6,909 properties for a total of Dh13.5 billion, while the secondary market transacted 9,017 properties worth a total of Dh28.85 billion in terms of volume of transactions. When compared to Q2 2021, the volume of off-plan transactions climbed 14.67%, while the volume of secondary/ready property sales declined 6.02%. The value of off-the-plan sales climbed by 47.11%, while the value of secondary sales increased by 4.24%.

 

Additionally, due to the spectacular surge in monthly sales transactions and their valuations leading up to Expo 2020, the Dubai real estate transactions surpassed Dh100 billion year till September, making it the highest transaction value since 2017. “Mortgage transactions are at an all-time high year-to-date, breaking all records, and the year hasn't ended yet,” said Lynnette Sacchetto. 

 

Why you should invest in Dubai off-plan properties:

Purchasing an off-plan house in Dubai has numerous advantages for an investor or someone looking to relocate in the near future. To begin with, off-plan properties are much less expensive than comparable properties in the area. This is particularly appealing to investors who want to buy inexpensively at a below-market-value (BMV) price and sell for a higher price, potentially earning thousands of dollars! Investors have made their fortunes by profiting from increasing appreciation as the project nears completion. As a bonus, any upfront fees are typically lower and more reasonable, which helps developers sell their off-plan property portfolios faster.

 

Quick pros of off-plan investing:

  • Off-plan properties in Dubai are at BMV-discounted rates
  • You can benefit from low-interest financing and mortgages
  • Smaller deposits and lower upfront fees.
  • Property can often be customized to your liking.
  • Properties are new and you will be the first occupant.
  • With the correct property and market conditions, you enjoy a capital appreciation on your property. 

 

Learn more on how to invest in off-plan properties here


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