Why did the off-plan segment dominate over 60% of the market value in 2024?

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Ali Faizan Syed · Accepted Answer

The off-plan market has become the engine of growth in Dubai, accounting for 60.7% of the total transaction value in 2024. Off-plan sales grew by an impressive 43.7% YoY, reaching AED 230.61 billion. This dominance is fueled by the ROE (Return on Equity) weapon. Strategic investors prefer off-plan because flexible 50/50 or 60/40 payment plans allow them to control an asset worth 100% of its value while only committing half the capital during construction. This mathematical leverage captures capital appreciation on the full asset value, often doubling the actual cash-on-cash return by the time of handover. The report confirms that investors seeking future-oriented growth are increasingly bypassing the "14-Year Trap" of ready properties to achieve capital recovery in just 5 to 8 years through these surgical off-plan plays.

Why did the off-plan segment dominate over 60% of the market value in 2024?

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Ali Faizan Syed