Builders Battle for Traders as Dubai Property Demand Soars

With demand for each off-plan and prepared properties in Dubai at an all-time excessive, builders are locked in an intense battle to win over actual property buyers.

Firas Al Msaddi, CEO of fäm Properties, says extra choices for patrons in a maturing market implies that builders are battling on a number of fronts to get their consideration.

“The ample provide of residential property is influencing patrons and buyers to grow to be extra selective when selecting a undertaking, and even a person unit,” says Al Msaddi.

“This is likely one of the indicators of a maturing market. Consequently, the competitors between actual property builders is intensifying, and several other very important aggressive metrics resolve who stands out.

“One secret is the general worth of every providing, together with life-style and residing expertise, location, ending and total high quality, supported by the developer’s model and fame.

“In the meantime, with property values at an all-time excessive, the overall ticket value per unit is turning into extra important than value per sq. foot. Fee plans are significantly essential within the present atmosphere of excessive borrowing prices.”

Hovering Dubai property demand was highlighted by a file AED124.4bn of transactions in Q2 2024. In the meantime, progress in provide continues, with 59,000 models registered by builders to date this 12 months, following final 12 months’s whole of 101,000, double the determine for 2023.

“Whereas the off-plan property market stays sturdy, not all builders absolutely capitalise,” says Al Msaddi. “Initiatives that stand out have distinctive promoting factors – like Verve Metropolis Stroll, which not too long ago bought 427 models in 45 minutes, with the penthouse fetching AED30 million.”

“The most effective gross sales tales come from builders like Meraas devoting time and sources to know the market inside-out, planning fastidiously, and having skilled brokers on their group.”

Builders, no matter their measurement, are additionally competing for the eye of actual property brokers, who account for many gross sales, and may profit by avoiding the quick observe to fee.

“Good brokers perceive that promoting the appropriate property to buyers to present them the very best returns brings continued enterprise and referrals,” says Al Msaddi. “Brokers who prioritize greater commissions for themselves over undertaking profitability usually miss out in the long term.”