During the first quarter of 2024, 120 projects were initiated in Dubai, comprising 34,000 housing units.
In the first quarter of 2024, Dubai witnessed an assertive wave of project launches from both local and international developers, averaging more than one launch per day.
Preliminary data from Cavendish Maxwell’s Property Monitor indicates that in March 2024, nearly 30 off-plan projects were introduced to the market, contributing approximately 10,000 units available for sale during the month.
“In the first quarter of 2024, the total number of launches has reached an unprecedented 34,000 units spread across 120 projects,” stated Zhann Jochinke, director of marketing and research at Cavendish Maxwell.
“The remarkable pace of activity in the off-plan market remains unabated and is expected to persist for the foreseeable future. The Property Monitor team is tracking over 100 additional projects in the planning phase across existing master communities,” Jochinke noted in the monthly report.
Developers have responded to the remarkable demand in the Dubai property market by unveiling new projects.
This year saw the introduction of several significant projects, such as Emaar Properties’ Heights Country Club worth Dh55 billion and Grand Club Resort valued at Dh41 billion. Additionally, Danube Properties launched Diamondz at Dh2.4 billion and Bayz101 at Dh3 billion, while Deyaar Development announced a Dh700 million tower in Jebel Ali. Swiss developer DHG Properties introduced a tower in JVC, Aqua Properties presented Central Downtown, and Arabian Hills Estate valued at Dh22 billion, among numerous other developments by both local and foreign developers.
Foreign investors’ confidence in the local property market, coupled with substantially lower prices compared to those in many major cities worldwide, is fueling the demand.
Sales record
Sales transaction volumes continued to rise sharply, increasing by 14.7% in March to reach a total of 13,664 transactions, setting a new record for March and marking the second-highest monthly sales volume ever recorded. The majority of sales, comprising 92% or 12,565 transactions, were in residential properties, including apartments, townhouses, and villas, according to Property Monitor.
March saw a significant increase in off-plan Oqood transactions in Dubai, with 7,768 recorded, representing a substantial 21.7% increase from the previous month and a 3.3% increase in market share to 56.9%. These were the highest transactions recorded since 2009.
Challenges for new developers
“The abundance of projects available may pose an escalating challenge for developers, given the intense competition, heightened buyer expectations, and increased scrutiny in selecting the optimal investment. Established and larger developers are poised to leverage the mass market across various price points, while niche developers concentrating on luxury and ultra-luxury segments will also hold strong positions, with fewer projects launched and a focused approach on their target markets,” cautioned Jochinke.
He cautioned that new entrants might find it difficult to distinguish themselves and may resort to offering traditional commercial terms favoring buyers, such as incentives, deferred payment plans, and developer-covered DLD transfer fees.
