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Tag: off-plan properties Dubai

  • Indians and Britons Lead Dubai Property Market with Dh225.7 Billion in H1 Deals

    Indians and Britons Lead Dubai Property Market with Dh225.7 Billion in H1 Deals

    Buyers from more than 150 countries invested in Dubai’s housing market during 2025, with Indian nationals accounting for 22% of all purchases, followed by British buyers at 17% and Chinese investors at 14%, marking the continuation of a long-standing trend of expatriate-led investment in the emirate.

    The consultancy found that Dubai’s residential market remained resilient during the US-Iran regional conflict, with buyer confidence returning quickly after a brief slowdown in March and April 2026.

    Overall residential prices averaged about Dh1,900 per square foot in the first half of 2026, up from Dh1,800 per square foot during the same period last year, representing a 6% annual increase despite broader market uncertainty.

    “While geopolitical tensions briefly affected buyer sentiment during March and April 2026, the correction was largely sentiment-driven – not structural,” said Aayush Puri, CEO of Residential, Middle East & CEO at Anarock Channel Partners, India.

    Puri noted that residential prices softened by just 4–7% in the February to April period, significantly outperforming the Dubai Financial Market Real Estate stock index, which dropped 34% at its peak, marking “the widest sentiment-to-asset gap of any Dubai crisis on record.”

    The recovery was supported by strong market fundamentals, with off-plan properties accounting for 70–77% of residential transactions during the period, reflecting sustained buyer confidence despite short-term uncertainty.

    Weekly residential sales rebounded to as much as Dh10 billion after ceasefire efforts progressed, suggesting investors viewed the slowdown as temporary rather than a sign of weakening fundamentals.

    Dubai’s growing population continued to support demand. The emirate added around 470 new residents a day in 2025, taking its population above 4.03 million by year-end.

    More than 129,600 new investors entered Dubai’s property market in 2025, up 23% year-on-year. Around 80% of transactions were cash purchases, reducing the market’s exposure to interest rate fluctuations.

    Among buyers, 38% purchased homes for their own use, while 28% bought properties for rental income. Another 21% invested to qualify for the UAE’s Golden Visa programme, while 13% cited capital preservation as their main motivation.

    The data reflects broader trends across the region, with Abu Dhabi recording Dh117 billion in real estate transactions during the first half of 2026, marking a 112% year-on-year increase driven by foreign direct investment.

    Looking ahead, Anarock expects Dubai’s residential prices to rise by 4–7% in 2026, supported by continued population growth, expanding international buyer demand and government initiatives. However, it warned that renewed regional conflict in the second half of 2026 remains the main downside risk to the market.

    The report underscores Dubai’s position as a safe-haven destination for global capital, particularly among Indian and British investors seeking wealth preservation, residency options, and stable returns in an uncertain geopolitical environment.

  • Dubai Property Market Rebounds as DFM Real Estate Stocks Extend Losses

    Dubai Property Market Rebounds as DFM Real Estate Stocks Extend Losses

    Two weeks after regional conflict began on February 28, Dubai’s real estate sector is demonstrating a striking divergence between physical market performance and listed equity valuations.

    According to Dubai Land Department (DLD) data analyzed by The Real Estate Reports, total transaction value surged to Dh15.66 billion in the week of March 9–15, representing a 51% increase in value and a 58% jump in transaction counts compared to the previous week.

    However, when excluding land plots to remove volatility from high-value land deals, built property value grew a more modest 13% to Dh8.26 billion, while transaction volume rose 56% to 4,327 deals. The gap between volume growth and value growth suggests buyers are proceeding with caution, resulting in a lower average ticket size per transaction.

    Off-Plan Sales Drive Market Activity

    Off-plan properties continued to dominate, accounting for 63% of built property value in the second week of March, only slightly below the 66% recorded immediately after conflict began. Within this segment, villa sales increased their share to approximately 23% of off-plan value, up from 16% the previous week, indicating buyer preference for tangible residential assets over commercial properties.

    The recovery in mortgage registrations provided further evidence of market functionality, with 1,053 mortgages registered during the week, nearly double the prior period, suggesting that the financing infrastructure supporting Dubai’s property sector remains intact despite regional tensions.

    “While the physical market shows signs of a recovery in activity, the heavy-volume sell-off on the DFM suggests that financial markets may be pricing in a more prolonged period of uncertainty.”

    Equity Markets Tell Different Story

    In stark contrast to the physical market’s resilience, the Dubai Financial Market (DFM) continued its downward trajectory. The DFM General Index (DFMGI) fell 5.7% in the second week of March on turnover of 1.52 billion shares—nearly double the volume of the previous week.

    Real estate stocks bore the brunt of the sell-off, with the DFM Real Estate Index (DFMREI) plunging 13.8% last week as investors demanded higher risk premiums for regional exposure. Trading resumed on March 4 with a temporary 5% limit-down threshold implemented to prevent panic selling.

    The divergence highlights how sentiment-driven equity markets are repricing regional risk while the underlying property economy continues to function. For investors, the data suggests that while short-term caution prevails in financial markets, Dubai’s real estate infrastructure and transactional mechanisms remain operational.

    Ali Shahin, founder of The Real Estate Reports, noted that Dubai real estate is proving it can operate under pressure even as listed property companies absorb the immediate shock of geopolitical uncertainty.

    The physical market’s resilience comes despite an initial 50% drop in weekly transactions immediately following the start of regional conflict, with industry leaders citing structural advantages and a diversified buyer base as key factors supporting continued capital inflows.

    For now, Dubai’s property sector appears capable of maintaining operational momentum despite elevated geopolitical risk, though the heavy selling in listed real estate stocks suggests investors remain cautious about medium-term prospects in the region.