Intense competition the result as buyers become more choosy
Dubai, United Arab Emirates
With demand for both off-plan and ready properties in Dubai at an all-time high, developers are locked in an intense battle to win over real estate investors.
Firas Al Msaddi, CEO of fäm Properties, says more options for buyers in a maturing market means that developers are battling on several fronts to get their attention.
“The abundant supply of residential property is influencing buyers and investors to become more selective when choosing a project, and even an individual unit,” says Al Msaddi.
“This is one of the signs of a maturing market. As a result, the competition between real estate developers is intensifying, and several vital competitive metrics decide who stands out.
“One key is the overall value of each offering, including lifestyle and living experience, location, finishing and overall quality, supported by the developer’s brand and reputation.”
“Meanwhile, with property values at an all-time high, the total ticket price per unit is becoming more significant than price per square foot. Payment plans are particularly crucial in the current environment of high borrowing costs.”
Soaring Dubai property demand was highlighted by a record AED124.4bn of transactions in Q2 2024. Meanwhile, growth in supply continues, with 59,000 units registered by developers so far this year, following last year’s total of 101,000, double the figure for 2023.
“While the off-plan property market remains robust, not all developers fully capitalise,” says Al Msaddi. “Projects that stand out have unique selling points – like Verve City Walk, which recently sold 427 units in 45 minutes, with the penthouse fetching AED30 million.”
“The best sales stories come from developers like Meraas devoting time and resources to know the market inside-out, planning carefully, and having experienced brokers on their team.”
Developers, regardless of their size, are also competing for the attention of real estate agents, who account for most sales, and can benefit by avoiding the fast track to commission.
“Smart agents understand that selling the right property to investors to give them the best returns brings continued business and referrals,” says Al Msaddi. “Agents who prioritize higher commissions for themselves over project profitability often miss out in the long run.”
