Off-plan sales now make up more than 50 per cent of all real estate transactions in Dubai for the first time since 2008. Now, off-plan is ahead of ready in a 51:49 split, according to data from fam Properties.
This is in stark contrast to the times in the last 10 years when ready sales have exceed off-plan transactions by splits of as high as 88:12 (back in 2010), 85:15 (in 2011 and 2012) and 83:17 per cent in 2009, when the market took a deep hit. The gap has since been closing year on year, with off-plan volumes now ahead of ready sales this year.
“We’re seeing a shift away from speculation in Dubai real estate as the market matures,” said Firas Al Msaddi, CEO of fäm Properties. “While initial launch phase sales by speculators have dropped, there has been a big increase in pre-handover sales within six to nine months of completion, and these buyers are largely medium to long-term investors or end users.”
The gap could widen with a handful of major launches scheduled in the weeks before January 1.