Unpacking Q4: AED 97.55 Billion, Dubai's Hungry Property Market Craves High-Quality Off-Plan Offerings

A 40% surge in total value: Q3 2023 saw transactions worth AED 97.55 billion, a significant increase from AED 69.5 billion in Q3 2022.

Beyond The Numbers...

In a world where the Dubai property market has seemingly been discussed from every conceivable angle, it's time to embark on a journey into Q4, where the real action unfolds. Our spotlight is on the front lines, where a remarkable surge in transactional activity is taking place, captivating the attention of both end-users and investors alike.

To set the stage, let's first examine a pivotal factor—the population of Dubai. Dubai's allure knows no bounds as according to the Dubai Statistics Centre, the emirate's population surpassed 3.76 million as we enter Q4 this year , marking a growth rate of approximately 1.53% from the end of 2022. That's over 50,000 people added in just the first half of the year alone. With such rapid population growth, the demand for housing solutions has never been more urgent.

Off-Plan Fever! Notably, the Q4 spotlight shines on the unprecedented demand for off-plan properties. New launches are making headlines by selling out in record time, and even properties near completion have become a hot commodity, with a limited number of resale units available. The appetite for premium off-plan offerings in the market is nothing short of remarkable.

Spotlight on Ellington Views By Ellington Properties

In this edition, we shine a spotlight on Ellington Views By Ellington Properties in Ras Al Khaimah Al Hamra Island. With its breathtaking panoramic vistas, Ellington Views offers an island paradise designed to seamlessly blend natural beauty with urban vibrancy. This development beckons its residents to a life led by design—a perfect reflection of contemporary living.

Nonetheless, skepticism looms large, with some drawing parallels to the market turbulence experienced in 2008 and 2014. The question on everyone's mind: Are we on the brink of another bubble, poised to burst?

Let's address the elephant in the room—Dubai's burgeoning population.

Estimations suggest that by the end of Q4, around 32,000 new residential units are slated for delivery. On the surface, this figure appears adequate to meet demand, especially if all new residents are presumed to be large families seeking homes with four or more bedrooms. However, the reality paints a different picture, as Dubai's population continues to surge in the latter half of the year, indicating a looming sharp undersupply in housing.

To achieve a balance of equilibrium, two potential solutions stand out—either augment the existing housing stock with more units or temper the population growth. The latter option is less desirable, as our goal is to welcome and encourage more individuals to invest in Dubai, propelling its ongoing growth and prosperity.

Therefore, the optimal solution lies in proactively ensuring sufficient housing for the influx of newcomers. Increased off-plan launches serve as a vital strategy to fulfill this imperative, as they expand the available units, aligning supply with the escalating demand.

Ellington Views By Ellington Properties - Ellington Views is the newest residential masterpiece by Ellington Properties in Ras Al Khaimah. Ellington Views I presents meticulously crafted studios, and 1, 2, and 3-bedroom apartments. Each unit is strategically placed to capture sweeping vistas of Al Marjan Island, the verdant Al Hamra Golf Course, and the serene waters of the Al Hamra Water Canal.

Elevating Housing Standards, shifting our perspective to the other side of the equation, the swift sell-out of off-plan units emerges as a positive indicator for developers. This phenomenon not only bolsters their confidence but also serves as an incentive to introduce newer, and indeed, superior developments. These progressive projects collectively contribute to expanding the inventory of residential units, ultimately mitigating the housing shortage in Dubai.

Units have been in high demand in super-prime locales like Palm Jebel Ali, extending to slightly more affordable communities such as The Oasis and The Valley, and even reaching as far as (Ellington Views By Ellington Properties!)?Ras Al Khaimah. Over the past five years, we've witnessed a steady expansion into areas that were once deemed the outskirts of Dubai. Today, they have evolved into thriving residential communities.

Consider Arabian Ranches, Jumeirah Golf Estates, and Dubai Hills, for instance. They were once considered remote, situated in the desert. Now, they stand as vibrant neighborhoods offering an array of property options and seamless connectivity to major hotspots.

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Does this imply that buyers are simply acquiring any available property? Not exactly. Every project that achieves a sell-out status is spearheaded by reputable developers like Emaar, Nakheel, or?Ellington.

In areas characterised by exceptionally high demand, such as Palm Jumeirah, a new or lesser-known developer may indeed attract attention, primarily due to the prestige associated with the location.

People are fixating on absolute change in pricing when looking at the Dubai real estate, which presents both an inflated view of things and is a misrepresentation of what’s actually happening.?Analysing the market at a closer level shows us that there is healthy, consistent demand in the offplan and secondary sectors.

In our view, a bustling off-plan market is not a luxury but a necessity for a thriving economy. It generates employment opportunities, fosters innovation, and attracts foreign investments. Moreover, it keeps the wheels of the construction and related industries turning, contributing significantly to Dubai's overall prosperity.

Fokrul Islam, Managing Director at Victorstone, commented-

"Dubai's enduring charm in the real estate arena remains steadfast, and the Q3 performance firmly cements its global status as an investment hotspot. The diverse success stories within our top-performing communities and the remarkable 22% surge in transaction volume, resulting in a market value of AED 97.55 billion, mirror the city's ever-evolving property landscape. These figures underscore Dubai's consistent ability to redefine benchmarks and attract astute investors seeking enduring value and returns."

As we delve into the final quarter of the year, we find ourselves amid an extraordinary surge in transactional activity within Dubai's property market.?

The time is now, join the red hot wave of financial prosperity in this dynamic city, now is the moment to seize the opportunity and embark on your investment journey in Dubai.

Contact our experts to select an off-plan residential complex in Dubai that meets your needs and budget today.

[email protected]?// +44 7743 373717.

Reece Sayers

Head of Dubai Sales.