Credit By: AI Arabiya
In a market traditionally dominated by off-plan properties, the real estate landscape in Dubai is experiencing a paradigm shift. Developers are cautiously venturing into the ready-to-move-in property sector, a trend gaining traction among residents and investors.
Changing Dynamics:
Buying ready-to-move-in properties directly from developers is different due to perceived high premiums and lower returns on capital compared to off-plan options. Off-plan properties, with their flexible payment plans and potential for higher returns, have been the preferred choice for buyers. However, the landscape is gradually changing as developers recognize the demand for ready properties and the market’s trust factor improves.
Developer Initiatives:
Leading private developers like Danube Properties and Dama Properties are stepping into the ready-to-move-in market. Danube Properties, with its Elegant project, introduced a unique payment plan catering to buyers’ preferences for immediate occupancy. Developers are responding to inquiries from those who seek ready units, and this trend is expected to grow as more developers venture into this space.
Market Trust and Regulatory Measures:
The improvement in the trust factor within the local property market is attributed to government measures related to regulations and residencies implemented over the past decade. The growing confidence in the market is contributing to increased demand for new ready properties. Buyers are more assured, paving the way for developers to diversify their offerings.
Insights from Industry Leaders:
Rizwan Sajan, Chairman of Danube Properties, notes that the introduction of ready-to-move-in properties stemmed from the overwhelming response to their off-plan projects, leaving them with no inventory for immediate occupancy. The success of initiatives like Elegant indicates a potential avenue for further exploration.
Imran Farooq, CEO of Samana Developers, observes a rising demand for ready properties, emphasizing the year-on-year increase of 20%. While acknowledging the strength in off-plan sales, he highlights the scarcity of ready-to-move-in stock, driving a premium on such properties.
Off-Plan vs. Ready Property:
The article discusses the advantages of buying off-plan properties, such as flexible payment plans and high-quality finishes in new developments. Developers are keen on offering better amenities in new projects to attract buyers. However, the appeal of ready-to-move-in properties lies in their immediate occupancy, rental income potential, and eligibility for investor or golden visas.
Premiums and Resale Market:
The article explores the premium associated with ready-to-move-in properties, considering factors like location, amenities, and developer reputation. Developers holding off-plan assets for at least a year before resale strategically maximize profits. Resale premiums vary across projects, with examples from Emaar Beachfront and DIFC Living illustrating the potential gains for property owners.
As Dubai’s real estate market evolves, the rise of ready-to-move-in properties marks a significant shift in buyer preferences. Developers, recognizing the demand for immediate occupancy, are strategically introducing projects to cater to this growing segment. The market’s trust, regulatory measures, and changing buyer expectations contribute to the emergence of a new era in Dubai’s real estate landscape.
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