Dubai’s off-plan property market is entering a more selective phase, with developers adjusting their launch strategies and buyers taking more time to assess opportunities.
Speaking on Dubai Eye’s Property Pulse, Tom Rees, Head of Off-Plan at Espace Real Estate, discussed the changing market, Dubai’s development pipeline and what buyers should consider before investing.
AED 2.1 Trillion in Development Projects
Dubai currently has approximately AED 2.1 trillion in active development projects, including AED 1.1 trillion in real estate and AED 1 trillion in supporting infrastructure. An estimated 350,000 residential units are expected between now and 2030.
For Tom, the investment in infrastructure is particularly significant.
Rather than focusing solely on the volume of new properties, buyers should consider how planned infrastructure will support individual developments and their surrounding communities.
Developers Are Changing Their Approach
One of the most noticeable shifts is how new projects are being brought to market.
Developers are increasingly using expressions of interest (EOIs) to assess demand before launching, with some releasing individual towers or phases rather than entire developments at once.
This allows developers to gauge buyer appetite earlier and take a more measured approach to new supply.
Meanwhile, buyers are becoming more selective. Tom noted that Espace’s off-plan enquiry volumes are approximately 35% lower than the previous year, partly reflecting a slowdown in new launches.
However, international interest remains, and buyers are spending more time conducting due diligence before committing.
What Makes a Strong Off-Plan Investment?
With more choice entering the market, understanding the fundamentals of a development is becoming increasingly important.
According to Tom, buyers should consider several factors:
Supply also needs to be assessed at a community level. While established master communities with limited opportunities for comparable development may be better positioned, high-density apartment markets could face greater competition.
A More Selective Market
Despite concerns around future supply, Tom believes Dubai’s property market cannot be assessed as a single market.
Different communities face different levels of development, demand and competition. The quality of new projects is also evolving, with developers introducing more extensive amenities to differentiate their offerings.
As Dubai continues to expand, the distinction between well-positioned developments and those facing significant competition is likely to become increasingly important.
For buyers, the focus should be on understanding the fundamentals behind each opportunity rather than relying on the appeal of a new launch alone.
Watch the full discussion with Tom Rees on Dubai Eye’s Property Pulse for further insight into Dubai’s evolving off-plan market.
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