Dubai real estate market seems to be improving from a slowdown that lasted approximately a year as a result of global financial slowdown. The arena of Dubai property investment is attracting the genuine buyers who have long wished to own a home in Dubai but because of unrealistic high rates they have unable to do so. For these buyers, the slowdown has turned the Dubai property market from sellers’ market into the buyers’ market. These real buyers not only consist of the emirate’s permanent residents, but also the expatriates working in Dubai for supporting their families back in their home countries. In fact, the expatriate factor has always contributed to the increase in number of people looking for freehold properties in Dubai.
According to Khaleej Times, the reputed Daily based in UAE, Properties in Downtown Dubai have witnessed a boost in demand from home buyers throughout the second quarter of this year, according to a study by a property management company. The drop in home prices and rents, which began in the first quarter of the year, appears to be the main drivers behind the spurt in demand for the property units in the area, the report claims.
The finishing point of a number of important projects in Dubai Marina and Palm Jumeirah also seems to have
contributed to it. Though, the ‘Dubai Q2 Residential and Commercial Report’ from predicted a further reduce of the residential rental market in the emirate. Sales prices of Dubai apartments decreased by an average 15 per cent across Dubai and those of Dubai villas by 13 per cent in the following quarter.
The fall is considerably less than the preceding quarter and may mean that the buyers’ market is bottoming out. Certainly in some areas, such as Palm Jumeirah; there has been a 20 per cent surge in sales prices for Jumeirah villas and seven per cent for Jumeirah apartments. The trend represents a major improvement from the first section of the year, where sales prices of apartments had dropped to 44 and 53 per cent and villas had crashed to 43 and 65 per cent in Dubai.
This quarter, prices in the communities like Downtown Burj Dubai, Dubai Marina and Emirates Living are having early signs of stability as new Dubai as a total reported a lesser drop in values. With the increase in the number of projects being handed over, owners are unenthusiastic to sell at a reduced cost and are either leasing their units or moving into their own units to save up on rents. Rents in the established communities such as Jumeirah Beach Residences, Downtown Burj Dubai and springs have been slightest affected by the recent crash as they have observed the most enquiries from tenants.
According to Atseco report published in Khaleej Times “The capital was finally seeing a shift in the market, with the buyers and tenants being able to dictate their terms when selecting their property. Due to the increased choices in residential units, tenants could now negotiate more favorable terms with landlords.” Considering the situation of the market it is really advisable to invest in Dubai property now as the future seems better in terms of profit and security of capital.
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