Changing face of real estate in Dubai
Changing face of real estate in Dubai - Seller's market with strong demand
According to new analysis:
â–ªï¸ Dubai's property market could see prices rising again in all residential segments
â–ªï¸ The current ratio of buyer enquiries to new property listings at 8:1.
Views of real estate firm: The role of buyers today
For the last few months, the buyers don't have a lot of options in the market and urgency is being shown as prices are on the increase. They are quickly countersigned on the dotted line as they have fear of missing out on a property. The company claims that it has a waiting list of buyers for certain properties.
The Real Estate Supply and Demand
If we think back, we were trying to convince buyers to look at properties as Dubai was in a buyers' market. Now seeing multiple buyers for one property as there is little supply therefore creating urgency, and at times, driving the price upwards by means of outbidding each other.
The COVID-19 effect: Clear signs of green shoot growth
Challenges & Opportunities faced by us
â–ªï¸ This is an encouraging sign for the Dubai property market and shows its maturity despite a global pandemic.
â–ªï¸ Buyers are not waiting for properties to go live online. They are contacting agencies to find out what is becoming available.
â–ªï¸ The LTV ratio and low-interest rates are a common denominator when it comes to buyers having the ability to step onto the property ladder.
First-time buyers make up 74%
Due to the government stimulus package increasing the LTV and lowering interest rates has never been a more affordable time to buy:
Impacts of Buyers
â–ªï¸ Property could be worth AED 2.5 Million with a down payment of 33 % at AED 800,000 in 2019.
â–ªï¸ The same property could be purchased for AED 1.9 million with a down payment of 26 % at AED 400,000 during the second half of 2020 and going into 2021 and the clients are also paying less in upfront costs.
â–ªï¸ Some of the buyers are still holding and placing themselves on waiting lists hoping for the right property to become available and are willing to stretch their budget to the maximum.
Home values tend to rise over time
Expected to rise for - The Springs & Victory Heights
The sold price of Type 2M villa, rose from AED 1.82 million in April 2020 to AED 1.975 million in September 2020 to AED .475 million in January 2021.
For Victory Heights, Type B villa, the sold price in May 2020 was around AED 4.1 million compared to AED 4.8 million in August 2020 and AED 5.1 in December 2020.