Dubai’s Real Estate Market Thrives With 38% Growth in Off-Plan Transactions in Q2
Dubai is witnessing a robust surge in its residential real estate sector, due to its strong trajectory in off-plan property sales. In the first half of 2023, a remarkable 57 per cent of off-plan transactions in Dubai were in the price range of AED500,000 to AED2 million, demonstrating the city’s appeal to investors seeking sustainable properties.
Madhav Dhar, the COO of ZāZEN Properties, a leading sustainable property developer in the UAE, believes that the upcoming years offer an ideal opportunity for off-plan real estate investors.
As COP28 approaches and deadlines loom for the UAE Net Zero 2050 and the Dubai 2040 Urban Masterplan, the emirate’s real estate developers are increasingly prioritising sustainability in their projects.
This move aligns with Sheikh Mohammed’s recently announced urban planning law, which seeks to bolster Dubai’s sustainable residential landscape.
The new law plays a crucial role in promoting sustainability by establishing an environmental impact assessment and strategic environmental assessment system. It ensures that Dubai’s future residential developments adhere to the city’s sustainable agenda while introducing a greater level of transparency and accountability in the sector.
Dubai has long been at the forefront of eco-friendly efforts in the Middle East, and its commitment to reducing carbon emissions is evident.
“About 9 per cent of the earth’s greenhouse gas emissions stem from the MENA region with building materials, construction, and building operations responsible for half of this environmental impact. Aware of the importance of mitigating these effects, the UAE is spearheading the Middle East’s eco-friendly efforts by implementing forward-thinking policies and encouraging more sustainable residential developments to create future-proof concepts which achieve ambitious targets,” Dhar said.
The emirate’s real estate market has been flourishing, supported by an array of new projects rising at an impressive pace. Investors have shown a keen interest, with the Dubai Land Department (DLD) reporting a record-breaking 60,440 transactions worth AED177.3 billion in the first six months of 2023.
This performance exceeds earlier projections of AED300 billion, firmly positioning Dubai as a lucrative investment destination. Data reveals a substantial 38 per cent increase in the value of off-plan residential transactions and a 30 per cent increase in volume during the second quarter, compared to the same period in the previous year.
The emirate’s population is also on a rapid rise, creating a parallel surge in demand for homes. As sustainable construction becomes a defining feature of the city’s residential landscape, off-plan investors stand to gain even greater returns in the coming decades.
