Is It Worth Buying Off-Plan Property in Dubai?

If it wasn’t worth it, I wouldn’t have changed the trajectory of my career and spent months at a time in Dubai immersing myself in the opportunities there. As the host of The Dubai Connect Podcast, where I share exclusive insights from global investors and industry experts, I can confidently say that the off-plan property market in Dubai is thriving. But many still ask, Is it worth buying off-plan property in Dubai?

Let’s explore the data from the past few years and dive into future projections to provide a clear answer, with an eye toward 2024, 2025, and beyond.

The Numbers: 2022-2024

Dubai’s real estate market has experienced tremendous growth over the past few years. In 2022, there were 86,849 real estate transactions, a large portion of which were off-plan sales, marking an 87% surge compared to 2021. Developers like EMAAR and Sobha dominated the market, launching high-demand projects in prime locations like Dubai Creek Harbour and Sobha Hartland II.

By mid-2023, the real estate market exceeded $72 billion in transactions, showing a 45% increase year-on-year. Off-plan properties continued to be a favorite among investors, driven by the promise of high capital appreciation and flexible payment plans.

Now, in 2024, we continue to see strong growth. Prices in key off-plan areas have risen by around 30% from 2023, especially in sought-after locations like Dubai South and Rashid Yachts & Marina. I discussed this in detail with *Mohamad Kaswani, VP at Property Finder, on my podcast episode *Market Outlook 2024, where we explored what’s driving this surge and how investors are positioning themselves for future gains. If you haven’t listened yet, I highly recommend tuning in for more detailed insights.

Why 2025 Looks Even More Promising

As we move toward 2025, the Dubai off-plan market is projected to maintain its upward momentum. Property experts like Knight Frank forecast another 15-20% price increase in the coming year. With Dubai’s infrastructure booming, including projects like the expansion of Al Maktoum International Airport, the introduction of more free zones, and the rise of smart city initiatives, off-plan properties are poised to remain a solid investment choice.

Developments in emerging areas like Dubai Islands, Emaar South, and Sobha Hartland II continue to attract global investors. The price per square foot for off-plan units in these areas is still competitive, making it an ideal entry point for both seasoned investors and newcomers.

I recently released a video discussing whether property prices in Dubai will continue to rise. In it, I dive deep into the factors driving the market and the opportunities for capital appreciation in 2025 and beyond. If you’re curious about the future trajectory of Dubai real estate, make sure to check out that video for a comprehensive outlook.

Key Benefits of Off-Plan Investments

For those considering off-plan investments, here are some critical advantages that make it worth the investment:

1. Capital Appreciation: One of the biggest benefits of buying off-plan is the ability to secure a property at a lower price compared to completed projects. For instance, off-plan properties in Dubai Creek Harbour sold at AED 1,500 per square foot in 2022 and have already appreciated by 20% by 2024. These types of gains are common in Dubai’s rapidly growing real estate market, with even more appreciation expected as we approach 2025.
2. Flexible Payment Plans: Dubai developers typically offer highly attractive payment plans for off-plan properties, making it easier for investors to enter the market with less upfront capital. These payment plans often require only a 10-20% down payment, with the remaining balance paid over time, interest-free. This kind of financial flexibility makes off-plan investments especially appealing for international investors.
3. Rental Income Potential: Dubai’s rental market continues to thrive, thanks to its booming tourism industry and an influx of expatriates. Off-plan properties in strategic locations are perfect for short-term rentals through platforms like Airbnb. Investors have seen yields of 8-10% annually, with the demand for both short-term and long-term rentals expected to increase as more people move to Dubai for work and leisure.
4. No Taxes: One of Dubai’s main selling points is its tax-free environment. Investors enjoy no capital gains tax, no property taxes, and no rental income tax. This makes the off-plan market even more attractive to international buyers looking for high returns without the burden of heavy taxation.

The Future is Bright

With Dubai’s population projected to grow to 5.8 million by 2030, the demand for housing will continue to rise. The government’s ongoing investments in infrastructure, such as transportation, education, and healthcare, are further solidifying Dubai’s appeal as a global hub for business and tourism. For investors, this means a continually increasing demand for real estate, especially in off-plan projects.

Off-plan properties in Dubai represent an opportunity to capitalize on the market’s growth potential. The trajectory is clear: the market is set to grow, and with it, property prices will continue to rise. This is why I believe that the question of whether it’s worth buying off-plan property in Dubai has a simple answer—absolutely.

If you want to learn more about off-plan properties, I invite you to explore my podcast The Dubai Connect and watch my latest video for an in-depth analysis of why now is the perfect time to invest.

Ghada Benitez (“GG”)
Certified International Property Specialist / Licensed Realtor®
Host of The Dubai Connect Podcast™ & The Spain Connect
GG Benitez International
619.339.7978 | GG@GGBenitezInternational.com | WhatsApp
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