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Off-plan remains popular amongst Dubai residents

Article-Off-plan remains popular amongst Dubai residents

OffPlan Projects
The off-plan option accounted for more than half of all residential sales in 2020

Recent reports by listings portals Bayut and Dubizzle show that 53 percent of residential sales last year were off-plan sales.

Indeed, according to the Dubai Land Department, the total number of properties bought in 2020 totaled $7.4 billion (AED 27.2 billion), of which $3.9 billion (AED 14.4 billion) were off-plan properties, while $3.4 billion (AED 12.8 billion) of sales accounted for ready property deals.

Meanwhile market experts JLL said that 53,000 homes are due for handover in 2021, which represents a 9 percent increase on the total stock at the end of last year.

Overall, however, - and in line with the previous two years - 2020 saw a decline in rental and sales prices across the emirate. Over the past 12 months, further market concerns have centred upon a fear of oversupply, and the impact of COVID-19 on the industry.

Indeed, while key communities in the city reported a price decline of between 2 and 10 percent, while rents decreased between 9 and 17 percent in 2020. There was significant growth in the affordable housing sector, with 332 sale transactions in Jumeirah Village Circle in the second half of 2020, the area also remained the most attractive area for renters on a budget, according to the report. Meanwhile, Dubai Marina was the most popular area for luxury sales over the same time period - accounting for 526 sales.

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