120 projects launched in first quarter of 2024 in Dubai, housing 34,000 units
Both local and foreign developers are aggressively launching projects, averaging more than one launch every day in the first quarter of 2024 in Dubai.
According to preliminary numbers released by Cavendish Maxwell’s Property Monitor, new off-plan project launches in March 2024 reached close to 30 projects with 10,000 units being added to the market for sale throughout the month.
“These projects now bring the total number of launches in first-quarter of 2024 to an unprecedented 34,000 units spread over 120 projects — an average of a new launch every 18 hours,” said Zhann Jochinke, director of marketing and research at Cavendish Maxwell.
“This phenomenal level of activity in the off-plan market shows no signs of abating anytime soon, and will likely continue for the foreseeable future, with the pipeline of projects in the planning phase being tracked by the Property Monitor team well exceeding 100 additional projects across existing master communities,” Jochinke said in the monthly report.
Unprecedented demand for the Dubai property market has prompted developers to launch new projects.
Some of the major projects that were launched this year include Emaar Properties’ Dh55 billion Heights Country Club and Dh41 billion Grand Club Resort; Danube Properties’ Dh2.4 billion Diamondz and Dh3 billion Bayz101; Deyaar Development’s Dh700 million tower in Jebel Ali; Swiss developer DHG Properties’ tower in JVC; the Central Down Town by Aqua Properties; Dh22 billion Arabian Hills Estate and many others by local and foreign developers.
The demand is driven by the confidence of foreign investors in the local property market as well as lower prices, which are much lower than most of the major cities around the world.
Sales record
According to Property Monitor, sales transaction volumes also continued their seemingly unstoppable ascent, surging by an impressive 14.7 per cent in March to reach a total of 13,664 transactions. “Not only does this set a new record for March but it also registered as the second-highest monthly sales volume ever recorded. Residential transactions, encompassing apartments, townhouses, and villas, accounted for the majority of sales at 92 per cent or 12,565 transactions,” it said.
In March, an impressive 7,768 off-plan Oqood transactions were recorded in Dubai, a substantial 21.7 per cent increase from the previous month and a 3.3 per cent uptick in market share to 56.9 per cent. These were the highest-ever transactions witnessed since 2009.
Challenges for new developers
“This plentiful buffet of projects and the choice that comes with it may present an increasing challenge for developers, as competition will be fierce, buyer expectations high, and greater scrutiny given in selecting the best investment. Well-established and larger developers will be best positioned to capitalise on the mass market across the majority of price points, while niche developers that focus on the luxury and ultra-luxury segments will also be in positions of strength, with fewer projects launched and a laser focus on their target markets,” Jochinke said.
He warned that the newer entrants may struggle to stand out, and may need to revert to offering traditional commercial terms skewed towards buyers, such as giveaways, post-handover payment plans, and developer-paid DLD transfer fees.
