New Real Estate Project in Dubai Every 18 Hours
Property Monitor, a real estate research and data platform, revealed that the Dubai property market has witnessed an increase in new project launches on the map. On average, more than one project is launched daily in 2024, with a rate of a new project every 18 hours.
According to the March report from Dubai's real estate market, issued by the institution and obtained by Al Bayan, the initial figures for new projects on the map showed the launch of nearly 10,000 units for sale during March. These projects contributed to an unprecedented total of 34,000 units distributed across 120 projects in the first quarter of this year, with a new launch occurring approximately every 18 hours.
The report highlights that this significant level of activity in the market does not indicate any signs of decline in the near future. With the recent announcement of three new major developments, along with the upcoming launch of the "Ghaf Gardens" project designed by Majid Al Futtaim, the available options for eager investors and end-users are expected to grow further.
The diverse mix of projects and options presents an increasing challenge for developers. Intense competition, high buyer expectations, and greater scrutiny in choosing the best investments are all factors to consider.
The report also notes that established and larger developers will be better positioned to benefit from the comprehensive market due to their pricing flexibility. Specialized developers focusing on luxury and ultra-luxury segments will also have a strong presence, even with fewer project launches, as they target specific markets.
New entrants to the market, competing face-to-face with the mentioned developer groups, may find it challenging to differentiate themselves. They might need to revert to traditional commercial offerings that appeal to buyers, such as gifts, post-delivery payment plans, and developers covering land and property fees.
March Performance
After several months of slight price increases, property prices in Dubai saw a significant rise in March. Monthly gains reached 2.37%, marking the largest monthly increase since May 2023.
According to the Property Monitor's Dynamic Price Index (DPI), current property prices in Dubai stand at AED 1,325 per square foot, representing a 7.4% increase compared to the previous peak in September 2014.
This substantial increase can largely be attributed to the significant differences in trading prices between existing homes and newly planned properties, deviating from the trend that began in late 2023.
Luxury Properties
The report also highlights the market share of properties priced above AED 10 million, which increased to 2.7% in March. Additionally, properties priced between AED 5 million and AED 10 million accounted for 6.3% of sales, while those in the AED 3 million to AED 5 million range saw their share rise to 13.8% of market sales during March.
