Dubai’s real estate market is flourishing: Dubai lures investors with lucrative yields and rising OFF-PLAN transactions
Dubai and Abu Dhabi have seen a remarkable increase in off-plan real estate transactions, pushing the UAE real estate market to new heights. The increasing confidence of investors in these cities is the reason for this boom.
According to research at JLL MENA, the growth in off-plan transactions, together with increasing demand for quality office space, a developing retail offering and transformative renovations in the hotel sector, demonstrates the dynamism of Dubai and Abu Dhabi as attractive investment destinations.
In the second quarter, Dubai’s OFF-plan residential sales recorded an impressive 38 percent increase in value and 30 percent increase in volume compared to the same period last year, according to data from Dubai Pulse. Around 57 percent of transactions were in the AED 500,000 to AED 2 million range, with investors focusing mainly on studio and 1-bedroom apartments in areas such as Jumeirah Village Circle, Dubailand and MBR City. The off-plan market in Abu Dhabi also performed exceptionally well in the second quarter.
The total value of off-plan transactions in the UAE capital more than doubled to AED 3.8 billion, compared to AED 1.8 billion in the same period last year. Most of the investor activity focused on transactions between AED 2 and 3 million, mainly on the purchase of villas on Al Reem Island and Yas Island.
Experts emphasize that buying off-plan properties can be a lucrative investment strategy given the rapid population growth in Dubai and the resulting increase in rental demand. However, they advise potential buyers to carefully assess the risks and select reputable property developers. Knowing the location, payment plans, associated costs and legal protection is also crucial before investing in an off-plan property. Assessing the reputation and track record of developers can significantly mitigate the risks associated with delays, cancellations or substandard construction work.
Source: www.arabianbusiness.com
