Dubai Real Estate: Off-Plan vs. Ready Properties – Which Sales Are Powering the $38.7bn Record Quarter?

Dubai's real estate market has achieved another milestone in Q3 2024, registering a record-breaking $38.7bn in sales, marking a robust 15% increase in volume and 14.5% in value compared to the previous quarter. This surge in activity has sparked significant interest in whether off-plan or ready properties are leading the market, with off-plan sales emerging as a dominant force.

Record-Breaking Sales Numbers: An Overview of Q3 2024

According to recent figures from Property Finder, Dubai's real estate sector saw an impressive 50,439 transactions in Q3 2024, surpassing previous records and bringing the total market value to AED142bn ($38.7bn). The market not only outperformed Q2 2024 but also set a new standard for quarterly sales in Dubai’s real estate history.

While off-plan properties accounted for the majority of this surge, with 63% of the total transactions, ready properties still played a significant role in market dynamics, comprising 37% of the total sales volume. Both segments demonstrated year-on-year growth, but the star of the show was undoubtedly off-plan sales.

Off-Plan Properties Lead the Charge

Off-plan property sales saw an incredible surge, driven by strong demand and a notable increase in investor confidence. Off-plan transactions reached an all-time high with 31,800 properties sold during Q3 2024, a 58.7% increase in volume compared to the same quarter last year. The value of these off-plan sales surged by 42.3%, reaching AED67.45bn ($18.4bn), compared to AED47.39bn ($12.9bn) in Q3 2023.The numbers reflect a strong upward trajectory that places Dubai’s off-plan sector firmly in the spotlight. Notably, the number of off-plan transactions even surpassed the 2009 peak, showcasing a 19.4% increase over the same period.

Ready Properties: Stability in a Thriving Market

While off-plan properties dominated, ready homes also posted healthy gains. Ready property transactions totaled 18,639 during Q3 2024, marking a 13.3% increase year-on-year and a 7.9% growth from Q2 2024. Ready properties accounted for AED74.53bn ($20.3bn) in total value, contributing to 52% of the overall market value.The growth in ready property sales shows that there is still significant demand for homes that are move-in ready, particularly from buyers looking for a quick return on investment or those seeking properties to live in immediately. This steady demand is reflective of the balanced nature of Dubai's real estate market, where both off-plan and ready properties serve different segments of the buyer market.

Dubai’s Luxury Real Estate Market Remains Resilient

In addition to the residential market, the luxury real estate sector in Dubai continues to thrive, attracting both local and international buyers. High-net-worth individuals have shown consistent interest in premium properties, which has supported the ongoing growth of luxury sales. The high demand for luxury homes further reinforces Dubai's position as a global hub for real estate investment.

Expert Insights: What’s Driving the Market?

Cherif Sleiman, Chief Revenue Officer at Property Finder, remarked that the remarkable growth in Q3 2024 is not only a testament to the resilience of Dubai's real estate market but also a reflection of a clear shift towards owner-occupancy, particularly in the off-plan segment.He noted, “Q3 2024 achieved significant milestones for Dubai’s real estate market, reflecting a robust surge in activity and a clear shift towards owner-occupancy. This transformation underscores the growing appeal of off-plan properties, which resonate more with buyers looking for long-term value. We’ve also observed an uptick in buy-to-live transactions, further supported by increased mortgage processing.”Sleiman also highlighted the launch of The Dubai Real Estate Strategy 2033, which is expected to play a crucial role in driving investment and enhancing sector resilience by promoting cross-industry collaboration.

Looking Ahead: What’s Next for Dubai Real Estate?

As Dubai continues to set records in its real estate market, the outlook remains optimistic. The significant growth in off-plan sales suggests that both investors and end-users are confident in the long-term value of properties in the emirate. The clear shift towards off-plan projects, coupled with increased owner-occupancy, signals a more stable and resilient market moving forward.With Dubai’s Real Estate Strategy 2033 set to bolster the sector, the next few years could see even more transformative developments, positioning Dubai as a leading destination for real estate investment globally.

Conclusion

Dubai’s real estate market in Q3 2024 has been marked by exceptional growth, with off-plan properties leading the way, driving both transaction volume and value to record highs. While ready properties remain a significant part of the market, the overall trend points to a growing appetite for off-plan projects as buyers seek long-term investments and owner-occupancy options. With the future looking bright, Dubai’s real estate market is poised for further success in the coming quarters.