Record high prices and aggressive off-plan payment plans by Dubai developers push buyers to outskirts

Due to Dubai developers' aggressive off-plan payment schemes and record-high prices, purchasers are being priced out of the central districts and are being forced to search for houses on the periphery.

Some of the more reasonably priced and cost-effective neighborhoods are experiencing price increases as a result of buyers and investors moving there due to price peaks in the city's most popular neighborhoods.

Due to the high demand from millionaires and other high-net-worth individuals moving to the emirate, property prices in desirable areas like Downtown, Business Bay, Palm Jumeirah, Marina, Sheikh Zayed Road, and Dubai Hills Estate have been rising at single to double-digit rates on a quarterly basis during the COVID-19 pandemic.

Additionally, off-plan properties are being snatched up by foreign investors because they are far less expensive than those in other international cities like Singapore, London, New York, Hong Kong, Paris, etc.

In the third quarter of this year, apartment rates increased by 19%, while villa prices increased by 23% year over year.

Due to the steady increase in demand for off-plan real estate, some developers in Dubai have started to offer aggressive payment options. Since demand is driving up the cost of building materials and some developers are having trouble finding qualified contractors, these payment options guarantee that projects are delivered and completed on time to consumers.