Why Investors Are Betting Billions on Unfinished Properties

October 22, 2025

We're watching investors commit billions to properties that won't exist for years.

Dubai's off-plan market hit $142.3 billion in transactions during 2024. More striking: off-plan properties now represent 63% of all property sales, up from 54% the previous year. That's not a trend. That's a wholesale market restructuring.

The scale reveals something about investor psychology we can't ignore.

The Pre-Completion Advantage

Off-plan properties typically come at 20-30% below market rates compared to completed units in the same area. The flexible payment plans attract attention. But the real driver is something else entirely.

Investors are positioning for appreciation during construction.

Many buyers sell before completion, capitalizing on value increases that happen while developers finish the project. The strategy depends on timing. Get in early, exit before handover, capture the spread.

Who's Leading the Charge

Emaar Properties, Damac, Sobha Group, and Azizi Developments dominate the off-plan landscape. They're competing primarily on price and payment structures. Some offer 50% upfront and 50% post-completion. Others provide 1% monthly payment plans.

The competition creates opportunity for buyers willing to commit early.

Business Bay registered over $1.2 billion in off-plan transactions in Q2 2025 alone, accounting for more than 1,900 deals. Areas with strong infrastructure development attract the highest off-plan activity.

The Psychology Behind the Rush

International investors make up roughly 65% of off-plan buyers. They're coming from India, the UK, China, and across Europe and Asia.

What drives them to commit before seeing the finished product?

Three factors converge: discounted entry points, Golden Visa eligibility through property investment, and rental yields averaging 7% citywide. The math works for buy-to-let strategies even before factoring in appreciation.

The off-plan surge also reflects confidence in UAE market fundamentals. Dubai's population grew from 3.86 million to 4.0 million in just eight months during 2025. More residents need more housing.

What the Numbers Actually Mean

The shift to off-plan dominance represents a market betting on continued growth. Investors aren't just buying property. They're buying market positioning.

When 63% of transactions happen before construction completes, we're looking at a market that values timing over tangibility. The willingness to commit early signals confidence in developer track records and regulatory frameworks.

We're also seeing a shift from pure investment to owner-occupancy in some segments. The off-plan model appeals to end-users who want to secure rates before completion and customize finishes during construction.

The trend shows no signs of slowing. Dubai reached record property sales worth $27.2 billion in the first quarter of 2025, hitting that milestone 18 days earlier than the previous year.

Investors are reading the same data we are. They're positioning accordingly.

At Zavora Group, we're tracking these patterns daily across UAE real estate. The off-plan shift represents the clearest signal we've seen about where investor confidence sits right now.