Developers Focus on Deliveries as Dubai’s Real Estate Market Stabilize
Developers are increasingly prioritizing delivering completed properties over starting new projects as Dubai’s real estate market stabilizes, suggesting that supply has caught up with demand. This year, developers expect to finish 42,241 units, including 9,909 villas and townhouses, 991 commercial properties, and 31,341 apartments.
So far, 13,815 units have been completed, comprising 2,562 villas and townhouses, 218 commercial properties, 11,035 apartments, and 64 projects. According to market reports citing Dubai Land Department data, 35,160 properties were completed in 2023, including 28,650 apartments, 5,187 villas and townhouses, and 1,323 commercial properties across 154 projects. By the end of 2023, Dubai’s residential property stock is expected to reach 719,000 units.
With ongoing deliveries, Dubai’s residential stock will exceed 760,000 units by the end of 2024, helping balance supply and demand. The market is stabilizing, as Dubai Land Department data shows, although the number of sales transactions in Q2 2024 has started to decline. In the first half of 2024, 80,118 properties were sold in Dubai, totaling Dh233.1 billion.
In Q2 2024, 43,612 land and property sales valued at Dh124.6 billion were recorded, a 44.1% increase over Q2 2023. These included 1,130 commercial units, 2,891 plots of land, 5,887 villas, and 33,704 apartments. Q2 2024 saw 8,989 mortgage transactions, a 6.8% rise from Q2 2023, with mortgage transaction values increasing by 34.8% to Dh44.3 billion.
In Q2 2024, 12,152 land and property transactions were completed, valued at Dh33.9 billion—a 62.5% decrease from Q2 2023. These included 10,041 apartments sold for Dh18.8 billion, down 56.6% from Q2 2023; 999 villas sold for Dh5.4 billion, down 75.5%; and 796 plots of land sold for Dh9.2 billion, down 58.9%.
Smaller developers also play a role but are often overshadowed by major players like Emaar Properties, Nakheel, Dubai Properties, Wasl Properties, Ithra, Damac Properties, Danube Properties, Sobha, and Azizi. One smaller developer, Marquis Developers, has been quietly delivering homes, including 91 residential and commercial units in the Marquis Signature project in Arjan, with Dubai Land Department Director-General Marwan Bin Ghalita present at the handover event.
“We are thrilled and honored to deliver these homes to our eagerly awaiting customers. Seeing their joy as they receive their keys is incredibly rewarding and reflects our unwavering commitment to our valued clients and the real estate sector,” said Mezuk Mohamad, Managing Director of Marquis Developers.
Haider Ali Khan, CEO of Bayut & Dubizzle and Head of Dubizzle Group Mena, commented, “Dubai’s property market continues to show remarkable growth, driven by factors like enhanced investor facilitation, transparent property transactions, and new off-plan projects.”
Although Dubai has long been a popular destination for tourists, the introduction of new resident visas has likely attracted even more newcomers. In Q1 2024 alone, the city welcomed over 25,000 new residents, boosting real estate demand. New metro stations, the Etihad Railway, and the new airport in Dubai South have also increased buyer interest in nearby areas. The market has benefited from new off-plan projects, available ready projects, first-rate amenities, and investor convenience.
As a result, searches for both luxury and affordable homes in popular neighborhoods have surged, showing consistent growth each month.
Recently, another real estate company announced reaching the Dh20 billion sales milestone. Unique Properties, a Dubai-based broker, reported that its total sales value had surpassed Dh20 billion, with hundreds of brokers facilitating property sales worth over Dh1 billion.
The UAE’s projected 5.7% economic growth, driven by foreign investments and buyers, is expected to attract more global attention. Knight Frank reports a 19% increase in sales of properties worth over US$10 million in Q1 2024, highlighting the area’s appeal to wealthy buyers and tenants. The region’s iconic architecture, freehold areas, and investor-friendly environment attract high-net-worth individuals seeking luxury living. Sean McCauley, CEO of Devmark, notes that the emirate’s status as a tourist hotspot draws people to residential options resembling upscale hotels, with amenities like pools, spas, and concierge services.
“In Dubai, we’ve observed a significant increase in properties offering extensive amenities, aligning with global trends. Developers of both branded and non-branded residences continuously innovate to distinguish themselves with unique offerings, resulting in developments with distinctive amenities,” McCauley explains.
Marquis Developers Chairman Navas Khan emphasized the company’s commitment to building spacious, family-friendly homes that offer profitable investment opportunities and a comfortable living environment. He highlighted the company’s core value of trust and the importance of delivering excellent homes on time to build customer confidence. “Our eight-year track record demonstrates our unwavering commitment to quality and client satisfaction.”
Being a debt-free, Shariah-compliant business allows Marquis Developers to maintain its commitment to excellence without the burden of debt or interest payments. The Marquis Signature project in Arjan offered buyers a convenient 60:40 payment plan, with 60% due during construction and 40% at handover. Mezuk Mohamad attributed the company’s success in attracting buyers and brokers without intensive marketing campaigns to the properties’ alignment with potential buyers’ needs and preferences.
