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It is not a matter to be worried about that the Dubai real estate market has been tightening since the beginning of the current year, compared to that of the previous couple of years.
In the last six months, there is a spike in property owners putting their units in the secondary market.
Most sellers are increasingly holding on, not putting their units in the market or not agreeing to be too flexible on the price, which is already a lot lower than the 2014 highs.
There is no need for concern on the recent tightness in the real estate market.
The prices in the Dubai market have gone up substantially after the Arab Spring until the first quarter of 2014.
So, the last year has been a healthy correction.
The recent happenings are signals that the market is maturing and the price movements will be gradual, not steep.
There was enough happening in terms of project announcements that made sure the local realty sector had a busy first half.
These projects have been enough to keep the momentum going through the latter half of the year.
Dubai has maintained its status as one of the fastest growing economies in the world.
The city's realty market has emerged as one of the booming real estate industry markets on an international level and it still attracts vast investments from overseas players.
The trend of homeownership in Dubai also continues, boosted by the creation of new job opportunities.
The market offers value for money, convenience, utility and outstanding quality of properties.
It has evolved strongly since it embarked on a series of iconic developmental projects that have propelled it to be a city of the 21st century.
There has been a new wave of infrastructure developments that is planned up to the year 2020.
The market has been on an upbeat course and is buoyed even more by the possibility of more promising projects leading to the Expo 2020.
Infrastructure development and urban planning are among the key pillars of the Dubai Smart City, one of the leading smart city projects in the world.
The other key areas are communications, electricity, transport and economic services. There will be several initiatives that will cover the sectors.
A thousand government services are expected to go smart once the project is fully implemented.
Dubai Smart City will usher in a new era to enhance the quality of life of residents, with significant development activities in the real estate sector.
The market trends suggest that customers are increasingly looking at friendlier payment plans in the off-plan segment, allowing a buyer to purchase with small down payments and easy installments.
A very important criterion is to be able to pay a significant amount of the purchase price after handover as it allows them to plan their finances over a longer timeline; limits exposure to delays or the risk of a developer not completing the project; and allows for rental income to commence on handover.
This supplements their finances and reduces the effective cost of purchase.
The Dubai rental market is expected to offer a large number of units as there is a slew of residential projects that is launched in the current year.
Several other projects are being slated for completion within the next two to three years.
The residential property market in Dubai would benefit from these projects, helping it regain the tenants it once lost, and putting the pressure of more competition in the neighbouring emirates.
Did you know that Dubai property deals are taking longer to complete
Source: Kalpesh Sampat, Special to Freehold
The writer is Director - SPF Realty