Dubai’s off-plan sales surge on steep ROI spike

Dubai’s off-plan sales surge on steep ROI spike

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Off-plan investment opportunities in Dubai are now attracting “generational interest” with rental returns recording the steepest increase since 2014, property pundits say.

For investors, the market offers strong rental returns. Average apartment rents in Dubai rose by four per cent over the fourth quarter of 2021, following a broadly stable third quarter — the steepest increase since 2014, according to Chestertons’ Research.

Interestingly, strong return on investment (ROI) is no longer confined to central locations like Downtown Dubai or Dubai Marina and can now be gained in vibrant suburban communities such as Sports City, Jumeirah Village Circle, Arjan, Arabian Ranches, and Al Barsha South, to name a few, the real estate consultancy said.

“Dubai’s reputation as a global business hub, its competitive real estate prices, strong rental returns, and expanded residency options make it ideal for new home buyers,” it said.

Investors can also benefit from highly competitive off-plan real estate prices compared to the rest of the world. For example, the price per square metre in Dubai averages €5,000 versus upwards of €10,000 per square metre in Paris or Sydney.

Moreover, the local off-plan market is going through an encouraging period of growth: Dubai’s off-plan apartment sales totalled Dh11.65 billion across 5,303 transactions in