Dubai’s property market shows no signs of slowing down, with new launches, particularly by established developers, continuing to sell rapidly. Projects from reputed local developers, known for their track record of delivering on time and maintaining high quality, are being snapped up within hours of their release. Meanwhile, even new developers entering the market are managing to sell their properties within weeks, if not days.
The strong demand for properties from established developers stems from the trust buyers have in their ability to deliver projects on time and with the expected quality. This trust translates into good capital appreciation and double-digit rental income for buyers. New developers are also benefiting from the competitive advantages Dubai offers, including lower prices and higher returns compared to other major global cities.
New developers are leveraging the “Brand Dubai” reputation, which assures buyers that their units will be delivered as promised, thanks to the strict monitoring of projects by authorities during the construction phase. This confidence has led many developers to believe that the market will remain robust through the second half of 2024 and into 2025.
Dubai’s position as a global city, with its secure environment and strong growth potential, continues to attract buyers. The Golden Visa initiative, in particular, has played a significant role in drawing people who had never considered purchasing property in Dubai. Many buyers have invested in real estate for the sake of residency and the peace of mind that comes with it. Compared to other global cities like London, Paris, Hong Kong, and New York, Dubai remains relatively affordable, which is a key factor in its ongoing appeal.
For example, Damac Properties, one of Dubai’s largest private developers, sold 600 units in its Dh1.2-billion Violet Phase 3 project within just a few hours, signaling strong demand. New project launches across the city have been particularly active from January to August, with more than 93,000 new units launched in various sub-markets, marking the highest number of units in Dubai’s development history.
Prominent local developers such as Emaar Properties, Nakheel, Damac Properties, Sobha Group, Samana Developers, and Danube Properties have been leading suppliers of new properties in Dubai. In September, Samana Developers sold out its Dh660 million debut waterfront projects, Ocean Pearl 1 and Samana Ocean Pearl 2, within just two hours of their launch. Located on Dubai Islands, these projects feature units equipped with private pools, and have attracted buyers from all over the world, particularly from Europe.
In response to the high demand, Samana Developers has acquired more plots on the Dubai Islands and plans to unveil new projects to meet the growing interest in waterfront properties. Similarly, in May, Abu Dhabi-based Aldar Properties sold out the first two phases of its ‘Athlon’ project in Dubai within 48 hours, generating Dh4.1 billion in sales.
Among the newer developers, Majid Developments, which launched its first project in Dubai in September, reported that 40% of the project had already been sold before the official launch. This reflects the strong appetite among both residents and investors who are keen to capitalize on Dubai’s strong capital and rental returns.
An interesting trend is the shift in buyer demographics, with many developers reporting that British and other European investors are now becoming the primary buyers, replacing their Asian counterparts in some projects. The UAE’s Golden Visa has also been a significant draw, with developers enticing buyers with offers that include three Golden Visas.
According to research released by Emirates NBD in September, the number of units sold year-to-date in Dubai has reached 104,250, just 14,000 units shy of the total transactions recorded in 2023. The research anticipates that activity levels will remain stable for the rest of the year, setting a new record for the highest number of residential units sold in the city.
