|By Arabian Post|For the first time since 2008, off-plan property sales now account for more than half of total real estate transactions in Dubai, according to a real estate broker in the city.
While the gap between off-plan transactions and sales of ready property for the first 3Q of 2017 is only minor – 19,915 (50.45%) against 19,564 (49.55%) – fäm Properties, one of Dubai’s largest real estate brokerages, says it represents a significant market trend.
At times over the last 10 years, ready sales have exceed off-plan transactions by ratios as high as 88%-12% (2010), 85% -15% (2011 & 2012) and 83%-17% 2009.
The gap has since been closing year on year, with off-plan transaction volumes edging ahead of ready sales this year for the first time since 2008 when the ratio was 59%-41% in favour of off-plan.
“We’re seeing a shift away from speculation in Dubai real estate as the market matures,” said Firas Al Msaddi, CEO of fäm Properties, which has developed a sophisticated market analysis tool to provide real-time insights into Dubai property trends.
“While initial launch phase sales by speculators have dropped, there has been a big increase in pre-handover sales within six to nine months of completion, and these buyers are largely medium to long-term investors or end users.”
Al Msaddi was honoured by the Dubai Land Department during the ‘Real Estate Tycoons Awards’ ceremony taking place at the Dubai Property Show in Mumbai last Friday, where he was recognised for establishing his company as one of the emirate’s leading real estate brokerages in just eight years.
Also published on Medium.