– Citywide Ready vs Off Plan
Since January 2012, off plan apartments have consistently sold at higher average prices per square foot than their ready counterparts. This trend is only exacerbated in the post-COVID era, as both investors and end-users continue
to show a preference for newer builds.
– Community Analysis
This effect holds true across a range of communities, both at the luxury and mid market level. Generally, off plan apartments have sold at a premium relative to their ready counterparts, and this is especially true post-COVID for a sample of communities that have been responsible for a significant proportion of Dubai’s apartment transaction volumes over the years.
– Building Analysis
If we zoom in further to examine this phenomenon on an even more detailed basis, we find that it is also consistent on a building-by-building level. Across the same communities examined on a holistic basis, there are a number of examples of off plan projects that were handed over in 2023 where the average sales price was higher than the average sales price for ready apartments in that same community. Moreover, we see a price drop in these same buildings once ready units begin selling, once again demonstrating the market’s insatiable appetite for newer builds.