Ready-made property sales in Dubai show an increase in demand from buyers. But prices are still going down, both in the off-plan, and in ready segments. Read more for where and for how much the prices have dropped.
In chase for buyers
Since the third quarter of 2017, ready property sales in Dubai have increased by 24 per cent, while off-plan transactions are down by 32 per cent. But across the whole of 2017, off-plan sector accounted for 60-70 per cent of all sales.
“In the first quarter of 2018, we have witnessed a reversal where ready sales account for nearly half of overall activity,” according to a recent report from Reidin-GCP. “This was widely expected as off-plan incentives reached their theoretical maximum and the price gap between ready and off-plan prices reached unsustainably high levels.”
But such market trends got property buyers used to affordability. And while overall property unit sales valued above AED1 million accounted for 55 per cent of activity between 2015-17, in the first quarter of 2018, more affordably priced properties below AED1 million switched the ratio and recorded for 55 per cent of all property sales.
Since the year start of 2018, ready property unit sales performed relatively well compared to off-plan properties in terms of buyers’ demand.
“There is a relative shift that is going on towards the ready space, with green shoots of recovery appearing in
Overall property sales recorded for 4,107 ready homes in Dubai, which is still 12 per cent down from the same period last year, but off-plan sales market experienced even more substantial 30 per cent drop to 6,086 units sold in the year to April 30 against 8,736 units sold during the same period last year, according to data released by Reidin-GCP.
The ready market buying activity also evidenced a gradual buyers’ interest return to the Dubai’s high-end villa communities. Price drops for Dubai villas and townhouses in some areas may have hit the bottom making them extremely attractive for buyers now.
“What we are seeing is that the villa communities are starting to witness steady demand,” said Lakhani. “Even at the Downtown, the high-end properties are experiencing a rise in demand.”
The biggest real estate sales drops in Dubai in 2018 were recorded in Meydan area, while Springs and Meadows villas managed to keep almost the same price tags, which, in average, gives a 6 percent decline in overall Dubai buying activity since January 2018.
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