Dubai off-plan property launches reach a record, surpassing Dh28b in a month

As Dubai’s real estate industry expands after the pandemic, new off-plan launches and sales are on the rise and hit a record high in November.

According to Property Monitor’s latest November report, new off-plan development project launches reached a record monthly high in November, adding a further 7,161 units to the market for sale at an anticipated combined gross sales value of Dh28.2 billion.

The study noted that apartments represent 63.7 per cent by volume of this new inventory while villas and townhouses represent 22.8 per cent and 13.5 per cent, respectively.

However, year-to-date new project launches have exceeded just over 44,000 units and Dh132.5 billion in aggregate sales value.

Property launches in Dubai declined after the establishment of a real estate committee in September 2019 to ensure a balance between supply and demand in the property market.

Off-plan launches have increased, of late, after the market absorbed the oversupply after the pandemic. Dubai property market demand had grown substantially due to the successful handling of the pandemic.

“We remain positive on the health of the Dubai market moving into 2023 and predict that growth will continue, the lessons of the past market cycles will need to stay at the forefront of decision-makers across developers, investors, and consumers,” said Zhann Jochinke, chief operating officer, property monitor.

“The big gains are probably behind us for the foreseeable future and some months of price stability look in prospect with small gains and losses evening out as we get into 2023,” he said.

Transactions volume

Transaction volumes in November stood at 10,188, increasing significantly by 18.1 per cent month-on-month and registered as the highest November ever and sixth highest for any month on record.

The study found that the split between off-plan (Oqood) and completed property transactions reversed the trend for the first time in five months in November and was in favour of the latter with title deed registrations accounting for 54.8 per cent of all transactions, up 7.9 per cent month-on-month.

In November, Emaar Properties dominated the off-plan market with the bulk of developers’ Oqood registrations, taking a commanding market share of 15.8 per cent. They recorded just under 900 transactions spread across a myriad of their projects.

Damac Properties came second at 13.8 per cent of all off-plan registrations, followed by Nakheel taking 13.2 per cent market share with the greatest activity at Palm Beach Towers in Palm Jumeirah and Jebel Ali Townhouses in Jebel Ali Village.

— waheedabbas@khaleejtimes.com

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