You would naturally think, "Where should I put my money in this off-plan boom?"
We create a list of top-performing off-plan areas in Q2 2024 by analyzing top property experts' most recent data and insights. These areas experienced major sales volume and price growth. This indicates really promising investment opportunities.
Read on as we break down only the need-to-know details. Check out what's happening inside where the off-plan property sales go up to the roof in Dubai.
Off-Plan Transactions Dominance
Off-plan sales comprised a whopping 63% of total Dubai property transactions in Q2 2024. This marks a 212% year-on-year surge in off-plan transactions despite only 5% more launched units.
| Area | # Transactions | Value (USD) |
|---|---|---|
| Jumeirah Village Circle | 3,102 | $805 million |
| Mohammed bin Rashid City | 1,998 | $664 million |
| Business Bay | 1,863 | $1.4 billion |
| Dubai South | 1,521 | $412 million |
Off-Plan Property Market: Where to Invest in 2024
Jumeirah Village Circle
From Q4 2023, Jumeirah Village Circle (JVC) takes first place in off-plan property transactions. It recorded 3,102 off-plan transactions in Q2 2024, worth $805 million. District 10 is touted as offering the best opportunities - think off-plan apartments priced from $68,000 to $710,000.
And with nearly 30,000 new homes slated for JVC, supply will continue outpacing demand. For investors, that spells opportunity.
Mohammed Bin Rashid City
Mohammed Bin Rashid City saw nearly 2,000 off-plan transactions last quarter, totaling $664 million. Luxury buyers flooded elite communities like Sobha Hartland and The Waterway by Prestige One .
With mega-projects also attracting buyers, areas around MBR City saw huge price per square-foot hikes:
- Sobha Hartland: +15%
- Dubai Hills Estate: +17%
For those looking to invest in upscale off-plan communities positioned for future growth, MBR City clearly presents a golden opportunity despite higher buy-in costs.
Business Bay
Known for its ultra-high-end developments, Business Bay continues to post strong off-plan sales growth from quarter to quarter.
- 1,863 transactions totaling $1.4 billion in Q2 2024
- Attractive 7.8% average gross rental yields over the past 12 months
- New luxury projects like Jumeirah Living Business Bay and Bayz 101 are performing well.
With approx. 20,000 new units launching in the coming years, Business Bay provides investors with stellar off-plan opportunities with projections of sustained high demand from luxury buyers and tenants.
Dubai South
Dubai South has emerged as an unexpected hotspot, thanks largely to expansion plans for Al Maktoum International Airport. Townhouse and villa sales here shot up 75% and 360% respectively year-on-year. Apartments still dominate though, making up 91% of transactions.
An extra 14,000 homes will be added in Dubai South over the coming years. Investors can capitalize on the area's continued growth.
The Outlook
The off-plan property market saw over 52,000 units scheduled for completion in 2024, with 78,361 new units launched this year so far. With nearly 300,000 units currently under construction, supply is clearly surging.
Yet some experts warn this influx could impact prices and rents over the medium term. Median off-plan sales prices fell 0.6% quarter-on-quarter in Q2 2024 - the second straight quarterly decline according to one report.
This suggests individual sellers are struggling to achieve opening prices for off-plan projects. Many are opting to take a loss rather than pay upcoming developer payments.
However, healthy demand persists, especially from bulk buyers and institutional investors. Earlier this year, registrations for off-plan properties surged over 76% year-on-year.
So, while risks are emerging, confidence remains strong in Dubai's economic growth story. Savvy investors who can wait out near-term turbulence can likely still benefit.
The key is doing thorough research. While some areas will inevitably see oversupply, others have strong demand drivers that justify a supply pipeline. Target areas with major infrastructure upgrades or a clear competitive advantage.
The Takeaway
The bottom line? Proceed with cautious optimism. Dubai's off-plan market retains bright long-term prospects. However, you must be more selective in 2024's shifting landscape. Do your homework before buying.
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