Dubai’s real estate sector is widely regarded as one of the most dynamic in the world, thanks to its continuously evolving skyline, booming economy, and strategic positioning as a global business hub. The market offers investors substantial potential, especially in off-plan properties.
Experts note a significant surge in short-term rentals and off-plan investments in 2024, with expectations for a stable balance in the coming year, 2025. The boost in sales is mainly due to flexible payment plans and early access to prime real estate. However, buying off-plan comes with its unique set of considerations and risks, which require careful planning and due diligence.
Arash Jalili, CEO and Founder, Unique Properties, noted, “Off-plan properties, which are real estate units purchased from developers before construction is complete, have seen a remarkable surge in popularity in Dubai. According to Property Monitor, off-plan sales in Q3 2024 recorded a year-on-year volume growth of 58.7%, reaching 31,800 transactions, the highest quarterly volume ever recorded. In terms of value, sales increased by 42.3% year-on-year, amounting to AED67.45 billion compared to AED47.39 billion in Q3 2023.”
The appeal of off-plan investments lies in their potential for capital appreciation, as early buyers benefit from value increases as development progresses. “One of the biggest advantages of buying off-plan is the potential for capital gains. By purchasing early, investors can often secure properties at lower prices than when they are completed, with the promise of price increases as the project nears its final stages,” added Jalili.
Meanwhile, Shilpa Mahtani, Co-Founder, bnbme Holiday Homes, mentioned the outlook for the year has been incredibly positive with 14.96 million overnight visitors as of October 2024, surpassing last year’s figures. “The demand for short-term rentals has been robust,” she noted. Shilpa believes that increased real estate activity and investor confidence have boosted the industry, making it an attractive option for property owners.
Akshay Nagdev, Managing Partner, Foremen Fiefdom, has similar thoughts as he thinks experts predict an 18% increase in short-term rentals and a 13% rise in long-term rental segments in 2025. “This surge is fueled by Dubai’s growing population and the city’s appeal as a destination for professionals from around the world. The real estate market in 2024 has already demonstrated extraordinary resilience, with property prices surging 41% in the first half of the year and over 43,000 transactions completed,” Nagdev noted.
