The Dubai real estate market is witnessing a notable increase in off-plan property sales. Experts have pinpointed the top areas showing exceptional performance in Q2 2024, underscoring promising investment opportunities in Dubai off-plan property.
The Dubai real estate sector saw a substantial rise in off-plan property sales during Q2 2024, as highlighted in a report by property specialist Haus & Haus. Off-plan transactions accounted for 63 percent of total property sales, indicating strong interest in new developments. Even though there was only a five percent rise in the number of launched units, transactions soared by 212 percent year-on-year.
Leading Areas for Dubai Off-Plan Property Investment
Jumeirah Village Circle (JVC)
Jumeirah Village Circle remains a top choice for off-plan property investments, securing the highest number of transactions for the fourth consecutive quarter. In Q2 2024, JVC recorded 3,102 transactions, amounting to $805 million (AED 2.95 billion) in sales value. According to Bayut’s Dubai sales market report H1 2024, the price per square foot in this family-oriented neighborhood increased by five to 12 percent compared to the same period last year. District 10 in JVC emerged as the prime off-plan property investment opportunity, with apartments priced between AED 250,000 and AED 2.6 million. JVC is set to see approximately 30,000 new residential units, which represents 80 percent of its current housing stock, potentially adjusting market dynamics.
Mohammed Bin Rashid City (MBR City)
The exclusive district of MBR City reported 1,998 transactions totaling $664 million (AED 2.4 billion), showing significant growth compared to 2023. MBR City is projected to deliver 19,845 units by 2028, including notable projects such as The Crest at Sobha Hartland and The Waterway by Prestige One. In Q2 2024, neighborhoods like Sobha Hartland and Dubai Hills Estate experienced a steady rise in sales price per square foot, with one and two-bedroom homes accounting for the highest transaction volume. Average prices in these neighborhoods increased by 15 and 17 percent respectively. Popular areas such as District One, District 11, and District 7 continue to offer strong off-plan property investment opportunities, with average returns on investment ranging from 7.45 percent to 48.9 percent.
Business Bay
Business Bay, known for high demand and rising prices, recorded 1,863 transactions with a total sales value of $1.4 billion (AED 4.8 billion). Average gross investment yields remained stable at 7.8 percent over the past 12 months. Leading off-plan projects, including Jumeirah Living Business Bay and Bayz 101, attracted significant interest from luxury buyers. The area is set to see approximately 20,000 new residential units in the near future.
Dubai South
Dubai South has become a prominent area for off-plan property investment due to the recent expansion plans for Al Maktoum International Airport. Last quarter, the area launched several new townhouse and villa communities, resulting in a 75 percent increase in townhouse sales and a 360 percent increase in villa sales year-on-year. Despite this, apartment sales remained dominant, accounting for 91 percent of sales. Dubai South will have an additional 14,000 new residential units in the coming years.
Future Outlook for Dubai Off-Plan Property
The Dubai off-plan property market is experiencing substantial growth, with over 52,000 units expected to be completed this year and 78,361 new units launched so far. With 297,000 residential units currently under construction, the market shows robust activity. Despite the positive growth, some experts have raised concerns about the impact of the influx of new units on market dynamics and residential property prices in the medium term.
According to the Q2 2024 Dubai Residential Real Estate Market Report by Real Trust UAE, the median off-plan property sales price in Q2 was $419,000 (AED 1.54 million), reflecting a 0.6 percent decline from Q1 and marking the second consecutive quarter of decline. The report also noted that individual sellers in off-plan projects are struggling to sell at initial prices, with many opting for a loss rather than making the next developer payment.
Despite these challenges, investor demand for Dubai off-plan property remains strong. The ValuStrat Price Index indicated a significant 76.3 percent year-on-year increase in off-plan residential registrations, demonstrating investor confidence in the long-term potential of the Dubai off-plan property market.