Mid-market and suburban communities such as Jumeirah Village Circle and Dubai South saw asking prices surge over 20 per cent year-on-year in the second quarter of 2025, while luxury villas recorded nearly 10 per cent gains. Against this backdrop, off-plan projects continue to offer developers’ incentives that secondary resale cannot match.
Some developers absorb Dubai Land Department transfer fees (4 per cent of value) through discounts and other benefits. These alone narrow the gap between launch and resale by 3 per cent to 5 per cent. When you add post-handover payment plans that defer up to 40 per cent to 60 per cent of the purchase price post completion, off-plan becomes an even more compelling proposition.
With as little as a 5 per cent to 10 per cent down payment at reservation, followed by milestone payments tied to the payment plan, topping out and handover, buyers can hedge against further interest rate reductions. This staged cash flow is invaluable in today’s volatile mortgage market, which is pegged to the US Federal Reserve, allowing you to secure tomorrow’s pricing without locking up your entire capital.
Secondary market “bargains” are around, but they are few and far between. When you do find one, they are typically 3 per cent to 5 per cent below launch rates pre handover but these prices vanish within weeks as handover approaches and investor appetite spikes.
Buying from the resale market makes sense only if you need immediate occupancy, rental income from day one, or wish to avoid any off-plan late delivery risk.
Negotiating with an emotional seller can also sometimes prove difficult, especially if they have unrealistic valuations of their property.
The Dubai real estate market has for some time been dominated by off-plan sales. For investors focused on maximum capital appreciation and cash flow management, off-plan remains the best choice. But remember to choose master-planned, blue-chip communities with strong presales and track records. Insist on escrow-backed projects and documented completion guarantees in the sales and purchase agreements.
In summary, off-plan today locks in future growth at current prices, while resale must compete on limited timing-based discounts and immediate yield needs.
The market is in good health and so as long as your needs are met, you shouldn’t go wrong.