In the dynamic landscape of Dubai’s real estate market, a significant shift is underway. While off-plan properties have traditionally dominated the scene, the tide is turning as developers respond to the increasing demand for ready-to-move-in properties. This blog explores the evolving trends, the driving factors, and the current state of the Dubai real estate market, shedding light on why buyers are considering immediate occupancy over future promises.
The Trust Factor and Regulatory Measures: One of the pivotal reasons behind the growing interest in ready-to-move-in properties is the substantial improvement in the trust factor within the local property market. Over the past decade, the Dubai government has implemented stringent regulations and residency measures, fostering a sense of security among buyers and investors. This newfound confidence is contributing to the rising demand for properties that are available for immediate possession.
Developer Initiatives: Leading private developers in Dubai, such as Danube Properties and Damac Properties, have recognized this shifting trend and are actively venturing into the ready-to-move-in property market. Danube Properties’ Eleganz, with its innovative one per cent payment plan, marks a significant step in this direction. Developers are responding to inquiries from potential buyers who seek the convenience and security of ready properties.
Market Statistics: Despite the prevalence of off-plan properties, there’s a noticeable uptick in the demand for ready-to-move-in units. In 2023, Jumeirah Village Circle (JVC) emerged as the most popular location for residential apartment sales, with other areas like Business Bay and International City also recording substantial transactions. Residential villas and townhouses in Al Furjan and Mohammed Bin Rashid City have seen increased interest, indicating a diverse demand for immediate occupancy across different segments.
Expert Insights: Industry experts, including Rizwan Sajan, Chairman of Danube Properties, Alina Adamco, Head of Sales at Metropolitan Homes, and Imran Farooq, CEO of Samana Developers, provide valuable insights. Sajan emphasizes the strong response to ready-to-move-in projects, while Adamco highlights the premium associated with such properties. Farooq acknowledges the increasing demand for immediate occupancy but notes the scarcity of ready-to-move-in stock, emphasizing the dominance of off-plan options.
Off-Plan vs. Ready Property Dilemma: Buyers face the perennial dilemma of choosing between off-plan and ready-to-move-in properties. While off-plan purchases offer flexible payment plans and the allure of new design concepts, ready-to-move-in properties provide immediate occupancy and potential rental income. The decision ultimately rests on the buyer’s timeline and preferences, with considerations for the evolving amenities and designs in the Dubai real estate landscape.
Premiums and Resale Dynamics: One of the critical factors influencing the choice between off-plan and ready-to-move-in properties is the premium associated with the latter. Alina Adamco details the premium rates, which vary based on factors such as location, developer reputation, and available units. The blog also explores the impact of regulatory measures, like the increase in Dubai Land Department fees in 2013, on curbing speculative resale practices.
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