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Property investors and buyers in Dubai showed an outstanding activity in July. Or to be more precise, lots more.
Both in ready-made and s, July’s showed the best performance since 2017, experts claim. At the off-plan market, Dubai Land Department registered 2,274 transactions last month — the best since December 2017.
This means that the combined off-plan transactions in the first seven months were up 13 per cent over last year, as per Reidin-GCP data.
Ready properties experienced the same uptick in demand last month, with July’s overall sales of 1,698 units being the best monthly figures since March 2017. In the year to end-July, overall ready property sales are up 4 per cent.
So, what’s driving the sales surge this year?
With property prices still way below their mid-2014 maximum, buyers seem to be picking up all sizes and payment schemes deals being offered at the market.
Monthly payments presented by developers allow the investors and tenants to become landlords for as low as AED2,000 – AED3,000 per month installments stretching over eight years and more. DAMAC and MAG are among those developers who go far beyond with such plans.
Post-handover schemes of multi-year durations are among the main factors behind the upturn in off-plan sales this year, experts say.
“Clearly, interest has picked up in the ready and off-plan space spurred by easy installment schemes,” said Sameer Lakhani, Managing Director at one of the provident real estate agencies in the region. “Emaar is now offering 5-year post-handover, while Dubai Properties has 6-year post-handover”, he mentioned.
“ continues to be the standout buyer choice in the ready space, while in off-plan, the emerging communities such as Meydan and continue to show strong performances. New offerings are definitely attracting investor interest,” he added.
The fact that off-plan and ready sales together amounted for 3,972 deals in July — typically a slack month — says much about buyers’ and investors’ sentiments.
Now, even if August sales figures will be subdued compared to the previous months, the market would still have that compensated with the July results.
And a visible upsurge is registered not only in the , where buyers commit to all-priced property deals.
“Today, investors have a great opportunity to generate significant returns in the under-priced real estate space,” said Kalpesh Kinariwala, head of the Pantheon Development, one of the small private Dubai developers. “They can earn returns of 7-8 per cent annually.
Prices have bottomed out and buyers are looking for yield guarantees, with Pantheon alone giving a three-year rental guarantee of a 8 per cent annual return in a four-year payment plan.
Moreover, prices are getting more affordable even in the secondary market too. Last year, there was a 40 per cent price gap between secondary homes and off-plan property offers. But this gap is now narrowing fast, “this being reflected in the higher ready sales this year,” said Lakhani. “The reasons for such a wide gap are many, not least being the easy installment schemes for off-plan. But such schemes are now being offered on ready as well,” he added.
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