Professional Speak on Selling property in an emerging market

The city has observed substantial growth since 2012 through increasing activity levels and business confidence.Dani Farhat, Residential Consultant, Better Homes

The global property markets today present several opportunities as well as considerable risks.

On one hand, established mature markets provide a safe and secure labor and capital; however, some of these economies are growing slower than anticipated and are also facing high competition.

On the other hand, emerging markets present some crucial opportunities for real estate. The most significant among these emerging markets is Dubai in the UAE.

The city has observed substantial growth since 2012 through increasing activity levels and business confidence.

Other than that, factors like realty based regulatory reforms, population growth, increased investor confidence and positive micro-economic signs prophesize and back it.

Additionally, the learnings from the past are enabling Dubai’s real estate sector to effectively take steps to turn it into a more transparent marketplace.

Dani Farhat, a Residential Consultant of Better Homes - Dubai Marina branch, would tell us how to sell property in an emerging market like Dubai where demand is coming from end-users and long-term investors; also, where the buying habits are changing as Dubai is now viewed as a location for a permanent home rather than an interim one.

Dubai as a mature real estate market

Dubai’s real estate market is still evolving and maturing.

Between 2004 and 2008, the industry and its related support services grew quickly, and property transactions and investments were record breaking.

However, it left a lot of loose ends behind.

These are now being tied up such as the strengthening of real estate laws and regulations for off-plan and ready properties that also include regulating the practices of real estate brokers and property developers.

Buying habits in this emerging market

Buyers can generally be classified into three categories.

Category 1 – Financially strong buyers who use real estate as a long-term investment. They understand the property market and its related factors, and their investments are generally successful.

Category 2 – The end-user, conscious of price, who often buys out of need and is more conservative when the market slows, and who may even choose to rent in a soft market.

Category 3 – Investors who play the market with risky property purchases for resale. Many default and lose a lot of money. This category includes developers and small investors.

Property presentation and precautions

Investors who are planning to sell their property in the market must keep in mind to promote the property at the right price (not too high or too low) and present it to the right target market through quality images supported by accurate information.

This may involve the owner making an investment in the property through minor maintenance work like having the property repainted, replacing old fixtures and fittings, and refurbishments since potential buyers are generally looking for a unit in good condition.

Here are some precautions that the seller can take:

a) Make sure that the agency does not list the property at a lower price than you, the seller, are asking.

b) Be sure that as the seller, you can recognize the unit advertised online or in print by the agency. Sometimes the marketing images an agency uses are only of the building or villa exterior, which does not highlight properties that either do not have images or that do not photograph well. This practice generates more calls to the agency, but may not necessarily benefit you, the seller.

c) The seller or you should sign an agreement with the agency to confirm the selling price of the property before it is marketed to the target market to ensure both parties remain committed and are in unison.

Source: Arva Shikari, Special to Freehold


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