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Dubai's real estate market has shown significant growth in 2022. The number of purchase and sale transactions increased by 76.5% over the year. The off-plan segment of the emirate grew especially fast. The forecast for 2023 is also positive. 115,000 real estate units are under construction, 34,000 of which have already been completed by more than 70% and are expected to be commissioned by the end of 2023.
Last year's FIFA World Cup in Qatar also had a significant impact on the growth of Dubai's off-plan segment. Many participants of the event visited Dubai and were able to better understand what the emirate offers to its residents and how it attracts people from all over the world. The reason for the increased interest in unfinished construction projects in the UAE can be explained by several factors:
- High ROI
Off-plan purchase allows investors to purchase real estate in Dubai in the shortest possible time at the lowest price. A down payment of 10% is an affordable option for most buyers.
- Payment installments
An additional element of the availability of off-plan real estate is convenient payment installments that investors can use. Payments can be divided into several parts: the buyer pays 10% of the value of the property when signing the contract, the remaining 30% in installments for the construction period, and 60% - when transferring the property or even within 1-2 years after that.
- High rental yields
After the construction is completed, buyers can immediately start renting out housing. The constant influx of expats from the UAE increases the demand for rental housing. Landlords can expect a guaranteed annual profit of 5% even in areas of Dubai still under construction, such as Jumeirah Village and Al Furjan.
- Safety
The Dubai Real Estate Regulatory Authority (RERA) has implemented a system of regulations to protect buyers. The law adopted in 2017 protects buyers of off-plan real estate from developers who do not fulfill their contractual obligations. The interests of investors will always be protected, since installment payments are made to special regulated accounts, which developers can access only as they complete the construction stages.
