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Prices Of Off-Plan Property Is Rising Rapidly in Dubai – Find Out Why

Social Kandura Staff Writer9 Jul 20221 Mins read

The average price for a single bed off plan apartment is about 46% higher than what it was a year ago, compared to a ready home in Dubai which saw an increase of only 14% as compared to last year – the prices for off-plan property is rising rapidly in Dubai.

“For end-users, developers will need to start offering more incentives, and not just low down payments,” said an estate agent. “With investor-buyers, the main attraction would be the UAE Golden Visa – and its 10-year residency – for property values of Dh2 million and over.”

With soaring high inflation rates across the UAE and GCC in general – buying a decent sized ready apartment is now becoming more difficult that ever – with prices set to go up further, people are now leaning towards more affordable ‘off-plan’ properties that enable them to buy a property in the UAE market while also making it affordable.

In April 2022, the UAE visa residency system announced that real estate investors could obtain Golden Visa when purchasing a property worth no less than Dh2 million. This has encouraged many Dubai residents to invest or merge their properties to reach the Dh2 million milestone to be eligible for long-term residency. The first set of developers have now started offering these Golden Visas under their off-plan projects to lure customers to picking up more spots in their off-plan premium properties. The Dubai Land Department’s website also currently offers the option to apply for a Golden Visa on their website for people who are eligible for the same – find out more here

One of the biggest contributor of the sudden increase in the prices are the wave of new launches across Downtown, Jumeirah, Al Wasl, Safa Park and the new projects around the Dubai Water Canal. To lure high end customers and enhance the appeal various area, developers are add more features – such as individual pools attached to apartments rather than a common one for the building, premium fitness facilities, etc. – this is making these properties shoot up in value – even before they are constructed and ready to be handed over.

There was a 60% increase in sales to 43,000 properties in the first-half of 2022, for a combined value of Dh115 billion. That’s an 87% increase over the same period last year.