Dubai Off-Plan Property Prices Set to Increase by 15% in second half of 2024

Friday, 26 July 2024

As we head into the latter half of 2024, the UAE’s real estate market is gearing up for some significant changes. Here’s what industry experts are forecasting for Dubai, Abu Dhabi, and Ras Al Khaimah (RAK):

Dubai: Surge in Off-Plan Property Prices

Price Increase: Analysts predict a 10-15% rise in Dubai’s off-plan residential property prices due to escalating construction costs and strong demand from foreign investors.
Developer Insights:
- Sunrise Capital: Yogesh Bulchandani, CEO, expects a 10-15% price increase in off-plan properties.
- Acube Developments: Chairman Ramjee Iyer forecasts a 15% rise, reflecting the booming real estate sector.
Market Trends:
- ValuStrat Report: Despite a drop in transaction volumes in June, off-plan sales soared by 33%.
- Regulatory Changes: The Dubai Land Department’s stricter rules requiring escrow accounts are boosting off-plan attractiveness by ensuring financial transparency and reducing project delays.

Abu Dhabi, RAK to give hot competition to Dubai

Abu Dhabi:
- Price Increases: Recent data indicates a notable rise in property prices:
  - Apartments: Up to 10%
  - Villas: Over 6%
- Luxury Market: Coastal areas like Al Reem Island and Yas Island have seen increases of over 10% for villas and 6% for apartments.
Ras Al Khaimah (RAK):
- Predicted Price Surge: RAK is anticipated to experience a 50% price boost leading up to the casino’s opening.
- Current Trends: Prices have risen by 20-25% over the last eight months, particularly in Al Marjan Island.

Changing trends in Dubai’s real estate market

Growing Demand for Integrated Communities:
- Modern Preferences: Buyers are increasingly seeking fully integrated communities with smart home technologies and sustainable features.
- Popular Areas: Neighborhoods like Jumeirah Village Circle (JVC), Furjan, Dubai South, and areas near the new metro blue line are performing well.
Increased Interest in Larger Properties:
- Demand for Space: There’s a trend toward larger properties with bigger plots, driving interest in suburbs and newer developments like Dubai South and the Expo region.
Demographic Shifts:
- International Appeal: The UAE’s high living standards, Golden Visas, tax benefits, and high rental yields are attracting global investors, with British investors now leading the pack over Indian counterparts.