Revealed: Dubai Off-Plan Launches With The Highest Returns – Allsopp & Allsopp

On this week’s episode of Taking Care of Business, join Operations Director; Paul Kelly alongside our Head of Off-plan; Fintan Flannelly, to chat about all things off-plan properties in the market.

Uncover how many millionaires are migrating to Dubai and where they are investing, which new developers have come into the city, the different types of payment plans for off-plan properties and where Dubai’s future master communities will be located.

Let’s take a dive into everything that was spoken…

Diving into Dubai’s off-plan property market overview

The episode kicks off with Paul setting the stage by noting the exciting developments in Dubai’s off-plan market that have launched in the first six months of 2024.

Fintan talks about the notable increase in the city’s population, now at 3.74 million, and how this surge is influencing both the real estate market and on-the-ground operations. Dubai is undergoing a MAJOR transformation, driven by strong demand and a relentless influx of new residents.

As the podcast goes on, Fintan shares an overview of the first half-year performance in the off-plan market, sharing the figures that are rising month-on-month: 45,271 off-plan sales and 20,652 completed units, a 50% increase from last year.

Fintan shares that the surge in new projects is a response to the growing demand, and the luxury segment has witnessed the most significant growth. Paul chips in with fascinating stats about the Henley Migration Report, which notes that there will be an influx of around 6,700 millionaires to the UAE this year.

Decoding the different buyer segments

Fintan talks about the various different buyer segments in the market, from both domestic and international.

Fintan shares how domestic buyers are increasingly investing in real estate within Dubai, preferring to keep their money in the city rather than their home countries. This shift is largely due to the favourable business environment and the government’s investment in infrastructure.

On the international front, Dubai is attracting a diverse range of buyers, from Europe to North America. The attractiveness of Dubai’s real estate market lies in its high returns, political stability, and growing economic environment.

Looking into Dubai’s master communities:

Paul poses a question about the emerging trend of master communities in Dubai, focusing on greener, wellness-oriented projects like the newly launched Ghaff Woods. Fintan speaks on how these developments fit into Dubai’s broader vision for the future. He notes that post-COVID, there’s been a heightened demand for residences that prioritise wellness, sustainability, and community living. Developments like Sustainable City, with features like car-free zones and lower emissions, offer residents a more sustainable haven to live in.

The mortgage market sees a 14-month high in Dubai!

Paul then shifts the discussion to the mortgage market and speaks on the recent surge in mortgage applications in Dubai. Fintan explains that this rise coincides with the handover of many off-plan projects, where buyers are now seeking financing to make their final payments comfortably.

Despite the common perception that off-plan purchases are cash-heavy investments, many buyers leverage mortgage options, especially with developers offering attractive post-handover payment plans. This is a trend that’s expected to continue as interest rates stabilise in the coming years.

The world’s most favourable luxury market

Paul and Fintan then touch on the luxury market, where Dubai has been ranked the number one city for property sales above $10 million. Fintan discusses the different hotspots for luxury properties, such as the Palm Jebel Ali and branded residences in prime waterfront locations. He explains how branded residences not only offer high-quality living spaces but also bring a level of design and service that appeals to wealthy buyers.

Looking ahead, Fintan also discusses upcoming launches and the overall developmental plan for Dubai’s real estate market. Areas along the Al Ain Road from Silicon Oasis to Al Maktoum Airport are set to become hotspots for master communities. Fintan talks about several high-profile developments, such as EMAAR’s Oasis and the Valley Phase 2, which are set to redefine luxury living standards in these communities.

To conclude with, Paul and Fintan’s conversation also touches on the commercial real estate sector, noting a significant rise in new office spaces. Discussing the importance of public transport in facilitating the growth of commercial hubs, with new metro stations and improved road infrastructure expected to ease the city’s traffic issues. They highlight Expo City as a key area of focus for future commercial and living spaces.

Tune into Taking Care of Business, every Friday!