PC: Mansion Global
Off-plan sales have been going up since the beginning of the year 2024. According to QUBE Development, the real estate market in the UAE is expected to reach AED 2.5 trillion, or $681 billion, by the end of this year due to the strong off-plan property market. This market has become a prevalent market and accounted for 65 per cent of total real estate deals last August.
The off-plan sales market, wherein the sale is undertaken even before the complete construction of the properties, has always been a highly significant force in the UAE property market. For August 2024, off-plan sales constitute a sizable 65 percent of the overall sales transactions taking place in the market and reflect its significance in driving market activity. Notably, the sales volumes for such developments increased by 54% from the same period last year, reflecting a continuously swelling demand for off-plan property units.
High Demand Among High Net Worth Individuals
One of the most powerful forces driving this trend is the growing number of high-net-worth individuals in the UAE market-according to Statista, an online portal that provides users with data analytics, statistics, and research. Among such a group of wealthy investors, there is interest in luxury properties as well as those off-plan. Among those, a considerable number of ultra-luxury projects and megaprojects take part. Not surprisingly, the developments in Dubai serve precisely to the tastes and preferences of HNWIs: Dubai is becoming a booming luxury real estate market.
According to QUBE Development, the incoming investments from those high-net-worth individuals would make the UAE real estate industry hit AED 2.5 trillion, or $681 billion in valuation, as of 2024. Attracted especially toward very premium projects and developments which provide long-term capital and strong returns on investment.
QUBE Development Expansion Plans
QUBE Development is among the biggest strides in the UAE’s real estate after the company recently announced it had launched its maiden residential project on the premises of Jumeirah Village Circle. In a move to build more inroads in the market, the company also plans to implement further investments. QUBE is committed to putting AED 2.6 billion ($708 million) of inventory into Dubai’s real estate sector by the end of 2025, further adding to this city’s skyline and boom.
As a recent entrant in the real estate market, QUBE Development is tapping into the emerging opportunities generated by the increasing demands for high-end residential and commercial projects in the region. The focus of the company on luxury and off-plan developments usually finds itself partaking of a general taste seen in the general trend, where international investors are only attracted to higher returns while they live in exclusive facilities.
Outlook for UAE Real Estate Market
With the off-plan market at the forefront of this growth, the UAE real estate sector is likely to have a record-breaking year in 2024. The constant flow of high-net-worth individuals and the completion of multiple high-end projects will continue to keep the sector buoyant in the next couple of months. The forecasted valuation of AED 2.5 trillion not only points to the strength in the market but also to an enduring appeal of the UAE as a global hub for luxury real estate investments.
