In recent years, with an increasing number of foreign and local property buyers, Dubai's off-plan market has been thriving. Dubai has maintained a reputation as a stable, affluent, and diversified economy, making it highly regarded among investors and end-users. The future of the off-plan market looks promising.

Recent reports reveal a significant 35% increase in demand for off-plan properties in the past three months. Moreover, off-plan transactions currently account for a substantial 61% share of the overall real estate market in Dubai, further validating this trend.

What's even more surprising is that in the second quarter of this year, off-plan transactions in Dubai reached AED 34 billion, showing a 750% increase compared to the same period in 2020.

Recognizing this trend, some real estate market experts suggest that investing in off-plan properties is a favorable opportunity in the current market environment. Here are a few reasons why:

First and foremost, the current rise in mortgage interest rates has changed the feasibility of purchasing ready-made properties for investment. While rental yields have increased, the associated costs of mortgages have surged, resulting in reduced net yields after deducting all expenses. Therefore, investing in ready-made properties for returns has become less favorable.

In contrast, off-plan investments offer distinct advantages as investors can allocate funds to properties still being sold at the original price. The flexibility of payment plans mitigates the impact of high mortgage rates, ensuring greater financial adaptability.

Secondly, off-plan properties often come with flexible payment plans, which is advantageous for investors. Purchasing off-plan properties allows investors to buy at a price lower than completed units. In contrast, completed unit prices tend to be higher.

Additionally, off-plan properties offer unique characteristics through their "future-ready" design and planning, distinguishing them from other properties.

Dubai's population growth serves as a significant catalyst for driving residential property demand. With its reputation as a diverse, open city that attracts talent and investments globally, population growth will expedite Dubai's development, accompanied by the need for housing and commercial properties planned for the future. Following current trends, off-plan properties have significant potential for appreciation once completed.

In summary, Dubai's off-plan market is showing favorable development trends. However, it's important to note that various factors can influence the real estate market, and trends may change over time. Therefore, investors and end-users should conduct thorough research and due diligence before making investments.