Dubai’s real estate market, after an intense period of soaring off-plan property prices in 2023, is now entering a phase of stabilisation, according to a comprehensive report by Betterhomes. High-demand areas such as Dubai Hills Estate, Business Bay, and Jumeirah Village Circle were at the forefront of this property boom, with prices in these key locations increasing between 15% to 30%. This surge was primarily driven by a combination of strong buyer demand and a limited supply of new developments. However, as the market adapts, there are now signs of a healthy correction, with off-plan property prices declining by 4.2%, pointing towards a more balanced and sustainable trajectory for the sector.
This shift comes as developers introduce new projects, easing some of the pressure that was inflating prices. With more supply on the horizon, investors are becoming more strategic, shifting their focus from off-plan properties to ready-to-move-in homes. These ready properties have seen a marked increase in popularity, now making up 54% of all real estate transactions in the first quarter of 2024. Transaction volumes for these homes have jumped by 30%, signalling that buyers are increasingly favouring immediate returns. Many investors are opting for properties that offer either instant rental income or immediate occupancy, as opposed to waiting for lengthy construction timelines to see a return on investment.
Despite the rising interest in ready-to-move-in homes, the off-plan market remains steady. According to Betterhomes, off-plan property transactions continue to show a modest but stable 5% growth in transaction value. This indicates that while investors are more cautious, off-plan properties still hold appeal, particularly for those seeking long-term capital appreciation or those with a higher risk tolerance.
The report by Betterhomes also highlights the role of increased supply and more competitive pricing as key drivers of this market shift. As developers look to maintain their appeal to more cautious, risk-averse buyers, many are adjusting their strategies. This includes offering more flexible payment plans, introducing innovative financing options, and developing properties in emerging areas that promise strong future returns.
Betterhomes’ report concludes by affirming that the current state of the market presents solid opportunities for investors, whether they choose to invest in off-plan projects or ready-to-move-in properties. The stabilisation of off-plan prices combined with the rising demand for ready homes is reshaping investor preferences. However, the overall outlook remains positive, with both sectors providing potential gains depending on individual investment goals. Betterhomes is committed to assisting clients in navigating these dynamic market changes, offering expert guidance to help investors make informed decisions based on the latest market trends.
