Record Dh124.4bn Transactions Mark Dubai's Property Market Surge

Dubai's real estate market is experiencing unprecedented demand for both off-plan and ready properties, leading to fierce competition among developers to attract investors. This surge in interest has prompted developers to enhance their offerings to stand out.

Firas Al Msaddi, CEO of fäm Properties, notes that the increased supply of residential properties is making buyers more discerning. "The abundant supply of residential property is influencing buyers and investors to become more selective when choosing a project, and even an individual unit," says Al Msaddi.

This selectiveness is a sign of a maturing market, according to Al Msaddi. He explains that developers are now competing on multiple fronts, with several key metrics determining who stands out. These include the overall value of each offering, lifestyle and living experience, location, finishing quality, and the developer's brand reputation.

Importance of Payment Plans

With property values at record highs, the total ticket price per unit has become more significant than the price per square foot. In this environment of high borrowing costs, payment plans are particularly crucial for attracting buyers.

The soaring demand for Dubai properties was underscored by a record AED124.4bn in transactions during Q2 2024. Additionally, the supply continues to grow, with 59,000 units registered by developers so far this year, following last year's total of 101,000 units—double the figure for 2023.

Unique Selling Points

Al Msaddi highlights that not all developers fully capitalise on the robust off-plan property market. Projects that stand out often have unique selling points. For instance, Verve City Walk recently sold 427 units in just 45 minutes, with its penthouse fetching AED30 million.

"The best sales stories come from developers like Meraas devoting time and resources to know the market inside-out, planning carefully, and having experienced brokers on their team," says Al Msaddi.

Role of Real Estate Agents

Developers are also vying for the attention of real estate agents who account for most sales. Smart agents understand that selling the right property to investors ensures continued business and referrals. "Agents who prioritize higher commissions for themselves over project profitability often miss out in the long run," says Al Msaddi.

This competitive landscape underscores the importance of strategic planning and understanding market dynamics for both developers and agents in Dubai's booming real estate sector.