It is a well known fact that in 2015 the residential market experienced subdued sales activity with data from the Land Department showing a 33% decrease in transactions compared to the previous year. Whilst it is still early on in 2016, the question on everybody’s mind is whether this is the time to buy or sell.
There is a great deal of supply in the market; buyers are able to cherry pick the very best deals and identify the most motivated sellers. For those looking to upsize or downsize in the same market, the increased supply makes it a lot easier to find the perfect property with less compromise than usual.
We are seeing properties transact very quickly when they are priced accordingly, with many villas being sold within the first two weeks of marketing. For buyers, the current price per square foot rate is the best it has been since 2011-12.
What's more, the banks are still offering attractive interest rates from as low as 2.99% (I recommend our partners ‘Homematters’ for an exclusive Espace discount). Rental prices have declined, but not as significantly as sales prices due to the consistent level of demand, so the smart money is to invest now and pay off your own mortgage rather than someone else’s!
The long term view of global surveyors such as Jones Lang Lasalle and Knight Frank is that prices will pick up again in the lead up to 2020 and the overall sentiment is positive.
This current period of stabilisation should be welcomed as a sign of the Dubai residential market maturing and thus becoming more appealing to end-user investors rather than speculative investors who were previously the market’s driving force and the main reason for volatile prices.
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The majority of our recent transactions have been sellers who have plans to leave Dubai in the next two years.
The prediction by global surveyors Jones Lang Lasalle is that this current stabilisation period is set to continue for 12-18 months and with more supply set to come to the market, it is undoubtedly a better time to sell now than later when there are even more properties on the market
The recent strengthening of the US Dollar has also made it a very appealing time to send money back home to places like the UK, Pakistan, India, Australia and the Euro zones. Many of our sellers have capitalised on the fantastic exchange rate, sold now and rented something short-term.
Our currency partners GCEN will beat the rate you are getting anywhere else with an exclusive Espace discount.
Time frames will dictate what is best for each individual circumstance but the upside potential and general positive long term sentiment for the Dubai residential market should breed confidence amongst buyers. For those looking to sell a property in Dubai, it is very hard to ever predict the perfect time but the attractive exchange rate and expected future supply suggests that now is better than later.
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