Dubai: Just over a fortnight into the new year, Dubai developers are coming back strongly with offplan launches, with homes suited for every budget. Whether that’s a Dh750,000 apartment or a Dh750 million penthouse – they are all available for their owner to turn up. (There is also a Dh600 million penthouse waiting at the Palm Jumeirah.)
These back-to-back offplan launches are more than compensating for a relatively weak showing in December, when demand had cooled down and it did seem that prospective buyers were going into ‘let’s wait’ mode. Now, developers are with new launches and releases hoping these buyers have waited enough to make up their mind.
“If developers were waiting and watching in December, there’s none of that in January,” said an estate agent. “This January should close with more offplan launches in Dubai than a year ago – and mind you, 2023 was the ‘year of offplan’.
“Developers are in the mood to launch and willing to wait for buyers to turn up. They are sure they will, and not just for the luxury projects.”
There is a noticeable trend where offplan properties are getting more love - price-wise - compared to ready-to-move-in homes.
And developers are more than hoping buyers in 2024 are in the mood to pay more.
“Most property buyers/investors are willing to pay a premium for the promise of a future home,” said Tom Hill, who is Head of Projects at London Gate, which just launched the ‘Aeternitas’, said to be the world’s tallest branded residential tower crowned by a clock. Prices start at Dh1.6 million at the high-rise tower, which will be in Dubai Marina.
“There is a noticeable trend where offplan properties are getting more love - price-wise - compared to ready-to-move-in homes. Buyers are willing to pay a premium for the promise of a future home.
“This means if you’re sitting on a property that’s ready to go, it might be worthwhile playing the waiting game to see if you can catch a better deal down the line.”
Another release at TownSquare
What will be interesting for end-users and investors alike is seeing more sub-Dh1 million options available, with Nshama adding a new phase at its TownSquare community – in Al Qudra - and where starting prices on the 1-bedroom units are Dh770,000.
This week, Deyaar launched a new project - Rosalia Residences - right into the mid-priced sweet spot. Located in Al Furjan, this is Deyaar’s third project in this emerging location since 2022.
“2024 should be another big year for Al Furjan as a popular residential location,” said a developer source. “Soon-to-be-completed projects are all nearly sold out, and there is still more that developers can get by way of demand in Al Furjan.”
Whether it’s Dubai South or along the Mohammed Bin Zayed corridor, developers are ramping up launches.
We remain optimistic about sustained demand, underpinned by Dubai's economic fundamentals. And the unwavering investor confidence.
“Developers started venturing further out with projects like Oasis by Emaar gaining immense popularity,” says a market update from haus & haus Real Estate.
Among other trend-spotting, haus & haus says:
- Despite over 60,000 completed units, demand still far outweighed supply due to the growing population (the fastest globally)
- Top sales increases (on price per square foot basis) were for Majod Al Futtaim’s Tilal Al Ghaf, the Jumeirah Islands, Dubai Harbour and Dubai Hills Estate (the latter two being from the Emaar portfolio),
- Newer master communities such as Tilal Al Ghaf and Dubai Hills Estate saw a surge in popularity and sales and rentals prices.
- Mature communities such as Arabian Ranches and Emirates Living still hold high demand, and broke transaction records, despite these newer master communities being developed. (On rentals, the biggest increases were for Dubai Hills Estate apartments, as well as in Dubai Creek Harbour, Jumeirah Islands and The Meadows.)
Here’s more luxury
At the luxury end of the Dubai property market, apart from those two Dh750 million and Dh600 million penthouses, there are plenty coming.
The development Tilal Al Ghaf - featuring only villas - used the week to release 'Amara', the final set of pricey homes there. Amara is to have 116 twin villas built around a community park with water and play areas. "A third of each twin villa is recessed to create space for the entrance, dramatically offsetting it from its successor," is how the developer Majid Al Futtaim describes the design aspect.
Ranjeet Chavan, founder and CEO of Nautilus Real Estate, said: "The current surge in offplan launches is a testament to the city's resilience - and appeal. We remain optimistic about sustained demand, underpinned by Dubai's economic fundamentals. And the unwavering investor confidence."
Here comes Armani
After making the launch announcement summer last year, units in the second Armani residential project in Dubai - at the Palm Jumeirah - are on sale. "Two-bedrooms start Dh21.5 million and three-bedrooms at Dh32 million," said Edward Atwood, Chief Communications Officer at Arada, the developer who is headquartered in Sharjah. "Four-bedrooms will be from Dh50.5 million and the five-bedrooms (excluding penthouses) from Dh60.5 million."
Investors preferring to have a look at the five-bedroom penthouses and two Presidential suites need to wait a bit. "We’re not disclosing at this stage pricing for these," said Atwood.
In other words, no shortage of options for buyers...