Dubai property projects sold 'in minutes'; nearly 90% of sales come from first-time buyers

Expat residents and overseas buyers account for 83 per cent of sales, with Indian, Egyptian and British passport holders representing the top three international markets

Photo: AFP file

Published: Thu 18 Jul 2024, 2:57 PM

Last updated: Thu 18 Jul 2024, 9:50 PM

Property projects from Tier 1 developers in Dubai are being sold out within hours, if not minutes, as demand for real estate stays strong in the emirate, industry sources said.

To cash in on the strong real estate demand among residents and foreign investors, developers in the emirate are also launching projects quite at regular intervals.

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Developers, regardless of their size, are competing for the attention of real estate agents and buyers, who account for most sales. Recently, a Meraas project was said to be sold out within 45 minutes while Abu Dhabi developer Aldar Properties sold its project in Dubai within 72 hours.

“T1 developers have a huge advantage here because they possess the strongest brand equity, the most trustworthy proven track record, and the most prominent locations. They also retain the largest network of brokers, who are responsible for most of their sales, and their overall offerings often out-perform those of smaller developers,” said Firas Al Msaddi, CEO of Fäm Properties.

Some of the Tier 1 developers include Meraas, Dubai Holding, Emaar Properties, Nakheel, and Damac Properties. Importantly, banks also offer mortgages to property buyers on off-plan properties in Tier 1 developers’ projects.

Not every project sells like hotcakes

“The projects that sell within hours are those which offer something different, and stand out from what else is available in the market from other developers. But even for T1 developers, not every single project sells out quickly. For instance, some ultra-luxury projects with a very high ticket price naturally take longer to sell,” said the CEO of Fäm Properties.

“While the off-plan property market remains robust, not all developers fully capitalise. Projects that stand out have unique selling points – like Verve City Walk, which recently sold 427 units in 45 minutes, with the penthouse fetching Dh30 million. The best sales stories come from developers like Meraas devoting time and resources to know the market inside-out, planning carefully, and having experienced brokers on their team,” Al Msaddi said.

Aldar Properties sold more than 660 units of its Verdes by Haven in Dubai within 72 hours of its launch.

Haven by Aldar is the Abu Dhabi-based company’s first development in Dubai in partnership with Dubai Holding, a diversified global investment company with investments in 31 countries.

Aldar generated over Dh1 billion through its sales events at the Dubai World Trade Centre, Aldar Square in Abu Dhabi, and an international roadshow that visited six different markets around the world.

Expat residents and overseas buyers made up 83 per cent of sales, with Indian, Egyptian and British passport holders representing the top three international markets by sales volume. The UAE nationals accounted for the remaining 17 per cent of sales.

Female buyers represent 28 per cent of sales with male buyers completing 72 per cent of purchased units. Around 56 per cent of buyers were under the age of 45, while first-time buyers accounted for 88 per cent of sales, according to industry studies.

Al Msaddi said the best thing about the market today is that it’s not dependent on one or two nationalities as it has a strong mix of international investors.

“Of course, we do have a higher ratio of certain nationalities for some projects. For example, in the case of NAS Gardens, we’ve seen more interest from Indian, Asian, Arab, Iranian and Russian buyers. Meanwhile, in the case of seafront projects, we see interest from many other nationalities, with a high European presence,” he said.

Payment plans crucial

Al Msaddi said the abundant supply of residential property is influencing buyers and investors to become more selective when choosing a project, and even an individual unit. This is one of the signs of a maturing market.

“As a result, the competition between real estate developers is intensifying, and several vital competitive metrics decide who stands out,” he added.

“Meanwhile, with property values at an all-time high, the total ticket price per unit is becoming more significant than the price per square foot. Payment plans are particularly crucial in the current environment of high borrowing costs,” he added.Dubai property projects being sold in minutes despite several new launches.