More than 142,600 residential units are under construction in Dubai and a total of 60,000 units are expected to be delivered in 2023, with about 20,000 of these already completed, according to a report.
Furthermore, close to 80,000 units will be introduced to the market in 2024 and 2025, the report from ZāZEN Properties, a Dubai-based and leading sustainable property developer in the UAE, says. The existing total residential supply in the emirate is approximately 517,849 units at the end of H1 2023, according to the firm.
This promising outlook for the off-plan residential market is evident and being fuelled by transformative policies and objectives, says the homegrown brand detailing why the cosmopolitan city is poised to maintain its upward trajectory.
It also shares data which reflects Dubai’s robust real estate growth over recent years and highlighting the forward-thinking initiatives of the government as a catalyst that is spearheading future success.
Growing from approximately 1.3 million people in 2005 to more than 3.5 million people today, Dubai’s population is on pace to nearly triple by 2025.
The UAE government has elevated its profile by working diligently to bolster the appeal of its Golden Visa program, accelerate the realization of green mandates like the Dubai 2040 Urban Masterplan and UAE Net Zero 2050, and introduce new initiatives such as the Dubai Economic Agenda (D33) to propel the economy. These efforts are not going unnoticed, as overseas investors from Europe, and more recently China, are migrating to the UAE in increasing numbers and investing in the country to safeguard their assets, it says.
The off-plan sector has been a key beneficiary due to its affordable barrier to entry and because newer developments are increasingly aligning with the UAE’s sustainable agenda; boosting potential return on investment (ROI). An example of this includes the first LEED Gold-certified project that will be delivered in the first half of 2024, reinforcing the notion that such innovation is contributing to eye-popping sales in the off-plan segment.
Compared to the AED4 billion ($1.09 billon) registered in Q2 2020, AED34 billion ($8.17 billion) worth of off-plan transactions were logged in Q2 2023, it said.
Madhav Dhar, ZāZEN Properties’ COO and founding member, commented: “Off-plan real estate is significantly more affordable when compared to ready properties - as there is a high probability of capital appreciation near completion and high rental yield compared to other major cities. With our sold-out ZāZEN Gardens project in Furjan, we have already seen investors resell their units for a 20-25% premium, within four months of purchase.
"With the UAE hosting COP 28 later this year, leading a sustainable revolution within the region, and the economic growth plans for the country going forward, off-plan projects will only increase in value. Developers must continue prioritizing sustainability in new developments as it will be profitable for them, economical for end-users, and beneficial to the government’s vision for the environment; it’s a win for all parties involved, including the environment.”
Real estate innovation
With Dubai relying on real estate innovation to usher in a new era of sustainability, ZāZEN Properties is doing its part to future-proof the economy. The homegrown brand’s latest development, ZāZEN Gardens in Al Furjan, will become the first LEED Gold-certified and Well-Being integrated residential development in April 2024.
Annually, it will reduce 469 metric tonnes of carbon emissions and generate close to 390,000 kWh of onsite solar electricity, which is about 30% of the common area requirement yearly. ZāZEN Properties is committed to continuing to add to the sustainable landscape of Dubai, providing a better future for the UAE.-- TradeArabia News Service