New off-plan launches and sales are increasing and reached a record high in November as Dubai’s real estate market expands in the wake of the epidemic.
In November, new off-plan development project launches reached a record monthly high, adding an additional 7,161 units to the market for sale at a projected aggregate gross sales value of Dh28.2 billion, according to Property Monitor’s most recent November report.
According to the report, flats make up 63.7% of the new inventory volume, while villas and townhouses account for 22.8% and 13.5%, respectively.
But as of now, new project launches have exceeded just over 44,000 units and a total sales value of Dh132.5 billion.
After the creation of a real estate committee in September 2019 to ensure a balance between supply and demand in the real estate market, property releases in Dubai decreased.
Off-plan launches have grown recently as the market has begun to digest the excess inventory left over from the epidemic. The efficient management of the epidemic has resulted in a significant increase in demand for real estate in Dubai.
“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
The number of transactions in November totaled 10,188, a huge increase of 18.1% month-over-month, making it the highest November ever and the sixth biggest month overall on record.
According to the survey, the ratio of finished versus off-the-plan (Oqood) real estate sales reversed the trend in November for the first time in five months, favoring the latter with title deed registrations accounting for 54.8% of all deals, up 7.9% month-over-month.
Emaar Properties, which registered the most developers on Oqood in November and held a dominant 15.8% market share, dominated the off-plan market. They kept track of a little around 900 transactions, dispersed among numerous enterprises.
Damac Properties finished in second place with 13.8% of all off-plan registrations, followed by Nakheel with a 13.2% market share. Palm Beach Towers in Palm Jumeirah and Jebel Ali Townhouses in Jebel Ali Village saw the most activity.