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Ready or under construction, elite or affordable — what kind of Dubai housing is of utmost demand now? Read more for the answer, as well as for latest forecasts as for Dubai real estate market from leading industry experts.
A general analysis of the state of the Dubai residential property market in the second quarter of 2019 conducted by Luxhabitat based on Property Monitor data showed that more than 1,711 and 6,409 were sold in the overall housing market for a total of AED20.4 billion.
These figures complement the statistics on the made in the Dubai real estate market in Q2, recently presented in a report by Luxhabitat and published on imexre.com.
At the same time, the total volume of real estate transactions in the secondary market, the report says, increased to AED13.7 billion in monetary terms, which is 5.83 per cent more than in the first quarter of the year, when the value of transactions amounted to AED12.9 billion.
Meanwhile, the on the contrary, saw a general decline in sales to AED6.6 billion, which is 11.8% less than in the previous quarter, due to fewer project launches in the second quarter.
Nick Grassick, managing director of one of the major brokerage agencies, has noted that prices in the sector declined by about 9% in the first six months of the year, while some residential communities were more resistant to this decline than others.
“Our department found out that apartments became a little more affordable for tenants of the emirate as a whole, that is, they got about 7% cheaper than at the beginning of the year. Given this trend, the number of buyers and tenants in the market is increasing, which, in turn, leads to a 'flight to quality', when the segment of becomes more popular, given its newly gained affordability. Thus, the basic balance of supply and demand suggests that the luxury real estate market in this case will recover faster than some communities with the reduced buyers’ interest," added Grassik.
Lucy Bush, head of residential sales and rents for Savills in Dubai, also noted that compared to the rest of the market, luxury properties in Dubai have undergone a more modest price correction in the first half of 2019.
On an annualized basis, the average capital value of properties in Dubai, as well as the average rental price, decreased by approximately 3.6% and 4.1%, respectively. “This trend is expected to continue in the second half of 2019,” Bush concluded.
For his part, Jason Hayes, CEO of a company that sells mainly luxury real estate units in Dubai, noted that in practice the number of requests for home ownership is growing in proportion to the transaction volume growth, on an annualized basis. In his opinion, this is mainly due to positive market sentiment, and partly due to the introduced by the government.
“The fundamentals of the Dubai property market in the medium and long term remain very reliable. As for the short-term forecast for Dubai, the nearest future is likely to become a period of price stability with a return to a modest price increase in the run-up of the Expo 2020,” Hayes said.
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