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Dubai’s off-the-plan sector underpins property market across UAE

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Sales in the UAE’s real estate sector fell for the first time in 2023 last month, with transactions in the country down 33 percent compared to December.

Sales in the secondary market fell by 2.4%, but a 42.5% year-on-year surge in off-the-plan sales transactions in April is sustaining growth in Dubai’s real estate market, according to ZāZEN Properties, the UAE’s leading sustainable property developer.

Investors prefer to buy off-the-plan rather than ready-made real estate projects, as such developments can offer returns on investment (ROI) of up to 10 per cent, depending on location, build quality and amenity choices, it said.

With the UAE’s economy stabilizing, especially compared to the rest of the world, overseas investors are increasingly turning to Dubai as a safe way to capitalize on investments across all industries, more so in real estate.

As a result, many rationalized the slowdown in sales transactions in April as a temporary trend, a by-product of factors such as Ramadan, shorter working hours and holidays, it added.

According to a recent survey of more than 1,000 respondents, 61% of Emiratis believe climate change is real and they believe human activities are the main cause.

In addition, 35% of participants believe that technological solutions must be adopted; 61% are willing to pay more for everyday products made from recycled materials, while 63% said they are willing to pay more for carbon (CO2) emissions. Pay more for less property.

Since the UAE is known to have no property tax and rental income tax, the return on investment is higher than other countries, and the demand for apartments is unusually high, which is attributed to the steady demand from local residents and tourists.

Additionally, it has seen developers increasingly build units that meet modern demands. Along with this agenda, green development has also received greater attention in recent years, developers said.

It added that this trend is expected to remain dominant for the foreseeable future, with initiatives such as the Dubai 2040 urban master plan and UAE Net Zero Emissions 2050 requiring immediate change to achieve future prosperity.

Madhav Dhar, Co-Founder and Chief Operating Officer, ZāZEN Properties, said: “Compared to the rest of the world, the rate of development in the UAE is accelerating due to several factors, including the country’s diverse population of over 40 different nationalities. “

Despite a slowdown in sales transactions in April 2023, the UAE’s real estate sector has been thriving and rejuvenated in recent years. Industry analysts point to this momentum continuing, at least for now, a sentiment ZāZEN Properties has seen in its current project, the ZāZEN Gardens in Al Furjan, he noted.

With 2023 being declared the Year of Sustainability and the 28th Conference of the Parties (COP28) approaching, real estate developers will play an increasingly important role in the UAE’s ability to achieve global and regional green goals.

This will continue as the country’s world number one ranking for talent attraction is another factor that will contribute to Dubai’s 2040 goal of doubling the UAE’s population to about 6 million; sustainable housing infrastructure will be needed to accommodate the influx of residents, he added.trade arab news agency

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