Real Estate
UAE Property Prices Climb as Supply Shortage Fuels Off-Plan Demand
Limited secondary market inventory and a surge in off-plan launches continue to push property valuations higher across Dubai and Abu Dhabi.
The UAE real estate market maintains its upward trajectory in the fourth quarter of 2024, driven by a persistent shortage of ready secondary market inventory and surging interest in off-plan developments. Market data indicates that capital values in prime residential districts continue to rise as demand from international investors outpaces the current rate of project handovers. Supply Constraints Drive Pricing The secondary market faces a significant squeeze, with available high-end units in established Dubai and Abu Dhabi neighborhoods reaching record-low inventory levels. This scarcity has valuation premiums rising, as buyers prioritize immediate occupancy over waiting for future completions. Analysts report that while several thousand units entered the market in 2024, the volume remains insufficient to suppress price growth in the luxury segment. Off-Plan Transactions Accelerate Real estate developers have responded to the supply deficit by launching a record number of new projects. Data shows that off-plan sales now account for a substantial majority of monthly transaction volumes. Buyers are increasingly opting for these projects due to flexible payment plans and the…