Dubai property sales: Will these 3 trends define what buyers’ want?

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Dubai: As in 2024, property buyers in Dubai are seeing no slowdown in the number of offplan launches they can pick and choose from in the first few weeks of this year.

In fact, all through January and February, there was an offplan launch or new property releases happening every second day – much like what it was in the whole of 2024.

The sheer availability of offplan property choices does not make it any easier for wannabe buyers – especially as nearly 50% of them are first-timers to the market. But there are clear trends starting to show that can turn out to be quite in favour of these newbie home buyers in Dubai.   

“The best part is that the sheer number of launches has meant that offplan launch prices have remained in check, which is not something that buyers were seeing in 2023 or first-half 2024,” said an estate agent. “In H1-2024, there was heavy pent up demand released after the reduction in the payment size before a Golden Visa can be issued.

“That meant prices in H1-2024 reflected this rush of demand from buyers seeking Golden Visas. Now, it’s all stability - with slight price changes either side - as the demand for property-linked Golden Visas smoothens out.” (The rule tweak for Golden Visas meant that an investor buying a Dh2 million or more property immediately got their 10-year residency visas processed rather than have to wait until they had paid off at least Dh1 million.)

More offplan projects are also happening in emerging locations within Dubai’s free zones – and that too means new property buyers get the price discovery advantage.

It will take longer for the results to show up, but mortgage financing linked to Dubai offplan projects might have gotten easier. Earlier, lenders could offer home financing once the project hits the 50% mark – now, the chances are that buyers can apply for and get approval ahead of the project at the halfway mark.

“The Dubai offplan market should soon see banks willing to open the mortgage taps sooner than the current 50% completion mark for financing," said Alois Kugendran, founder and CEO of Amaya Real Estate.

“For first-time buyers especially, this opens up real possibilities to buy at a lower down payment and further instalments.

“By adopting innovative financing solutions, developers and banks are not only opening doors for more property buyers but also setting a standard that others will inevitably follow. This shift will energise the Dubai property market, driving growth and creating opportunities for both buyers and developers alike.”

This will be particularly of value to a buyer in relatively smaller ticket purchases. For instance, if a potential buyer has an eye on a Dh1 million property, but doesn’t have the self-finance amount to meet the down payment and multiple instalments, then easier access to home loans will come in handy.

A third factor that will show up in offplan buyer decisions – especially investors wanting to rent out – is the newly introduced Rental Index and building rating system in Dubai.

“Dubai residential rents are still holding at higher levels – and that’s exactly what new investors have an eye on,” said a broker. “Newer buildings obviously come at higher ratings, and buyers will do well to look at projects that come with completion schedules in 2026-28.

“The Dubai star rating will be one of the biggest influences in offplan demand going forward. This trend is only getting started.”