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The new report by JLL consultancy firm, presented recently, has confirmed that the best time to purchase property in Dubai is now.
And market revival may paradoxically begin with the affordable housing, although the rise in that prices segment automatically makes the ‘affordability’ issue less relevant to the Dubai’s real estate.
Other analysts have predicted that the first Dubai property prices uptick next year may take place in the segment of luxury housing, for here the demand remained stable for several quarters in a row, while buyers in this market category are usually more accustomed to price increases. When we are talking about millions-worth transactions, a few percent growth is not crucial for the demand, which can hardly be said of the affordable housing market.
In any case, if you intend to buy property in Dubai, it’s better to take your chance now, for the prices will definitely grow in all Dubai property market segments, it’s just a matter of time. And relying on JLL report’s data, an extra drive in purchase decision making is advised, if you’d like to buy an apartment in areas such as Dubai Silicon Oasis, Motor City and Discovery Gardens. According to JLL experts, these are the locations to first witness price increase next year.
To be precise, if you decide to put off your decision to buy, say, a one-bedroom apartment in Silicon Oasis or Discovery Gardens till next year, it may cost you extra USD 7000 - 9000 (4-5 per cent) above current average price of USD 177 112 (according to JLL data). And relying on real (not averaged) prices for apartments in areas such as Dubai Sports City or Dubailand, the price of a delay could be much higher – in between USD 8,700 and USD 20,500, for in these areas property prices now range between USD 217,984 (AED 800,000) and USD 408,719 (AED 1,5 million).
“The time is now right to buy property in Dubai as prices have bottomed out,” Craig Plumb, head of research, MENA, JLL, resumes.
And as for the Dubai housing market regulations we promised to mention about, you can be sure that no raising transaction fees and extra charges are expected in the nearest future, while, on the other hand, market transparency as a whole is put on a much higher level, ensuring the investors’ trust.
“Our role is to support the industry and support the market rather than drive it really. I think we are seeing a more mature market, better regulations, more informed decision making from the investors, but we have to be careful not to over-regulate which will stifle investment,” Khodr Al-Dah, Director – Technical Department, DLD, said recently, speaking at panel discussion at Big 5 event.
