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Real Estate

Developers Locked in Battle to Win Over Investors as Dubai Property Demand Soars

 With demand for both off-plan and ready properties in Dubai reaching unprecedented levels, developers are engaged in an intense competition to attract real estate investors.

Firas Al Msaddi, CEO of fäm Properties, highlights that the maturing market offers more options for buyers, prompting developers to fight on multiple fronts to capture investor interest.

“The abundant supply of residential property is making buyers and investors more selective when choosing a project, and even an individual unit,” says Al Msaddi. “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."

According to Al Msaddi, the key factors include the overall value of each offering, such as lifestyle and living experience, location, finishing, and overall quality, supported by the developer’s brand and reputation. Additionally, 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.

The soaring demand for Dubai property was underscored by a record AED124.4bn in transactions in Q2 2024. Meanwhile, the growth in supply continues, with 59,000 units registered by developers so far this year, following last year’s total of 101,000, double the figure for 2023.

“While the off-plan property market remains robust, not all developers fully capitalize on it,” says Al Msaddi. “Projects that stand out have unique selling points, such as Verve City Walk, which recently sold 427 units in 45 minutes, with the penthouse fetching AED30 million.”

“The best sales stories come from developers like Meraas, who devote time and resources to understand the market inside-out, plan carefully, and have experienced brokers on their team.”

Developers, regardless of their size, are also competing for the attention of real estate agents, who account for most sales, and can benefit by avoiding the fast track to commission.

“Smart agents understand that selling the right property to investors to give them the best returns brings continued business and referrals,” says Al Msaddi. “Agents who prioritize higher commissions for themselves over project profitability often miss out in the long run.”

 

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