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The residential property sector in Dubai is now going through a period of stability, although many developers continue to announce new residential projects. Several new projects are coming up all over the city in line with increased investor confidence.
The realty sector in the UAE is generally heading towards stability as there is plenty of available stock to sustain the ever-increasing demand. A number of new developers are coming to the market with multiple new projects, facilitating the continued stabilization of property prices.
Property prices have showed an upward trend during the first quarter of the current year. The months after that, the market has seen correction in prices, which cannot be stated as stagnancy or downtrend. There is no slowdown in the current market. Property sales or demand has not dropped so far. It is only a reflection of market stabilization in terms of prices.
Dubai continues to witness positive investor confidence and sentiment, thanks to a maturing real estate market supported by strong economic growth, reliable regulations and a number of quality infrastructure.
For any stable and maturing property market like Dubai, such correction in prices is healthy. It brings stability.
Correction and downtrend are two different things. The Dubai realty market has seen appropriate correction, stability has been achieved, and now, in the last quarter, the Dubai market is expected to be ready for an upturn again.
This is how stable markets work. The emirate’s real estate market fundamentals remain strong, with enhanced transparency despite the changing market dynamics. We expect the real estate demand in Dubai to continue being resilient.
For property investors, now is a good time to buy off-plan properties. The recent trends are in favor of investing in off-plan properties, for which the yields are usually higher and the initial investment lower compared to completed properties.
Off-plan sales continue to rise, aided by more stringent regulations imposed by the Real Estate Regulatory Authority (RERA) on investments into escrow.
Property investors are now keen on the new happenings in the realty market. We have been ex-periencing overwhelming response from the market in terms of investments in off-plan projects.
When it comes to the profile of investors in Dubai’s realty sector, we can classify them into two types: international investors and end-users. The first group is still buying completed properties, but the second group primarily depends on their cash flow and the time frame for completing the projects. They buy off-plan properties if they can afford to and if they are in the Middle East for some time; however, they go for completed properties if their funds are limited and if they need the property immediately.
In the recently held Cityscape Global, the realty sector in Dubai retained its top position in infra developments despite the influx of international players that showcased numerous projects.
The emirate’s real estate market is witnessing a surge in queries as the city provides stability and peace in terms of geopolitical factors so that people from several Middle Eastern and European coun-tries are migrating within the region, preferably settling in the emirate.
The demand in the commercial realty sector is also on the rise as more corporate companies are cur-rently shifting their headquarters, or migrating to better locations in Dubai.
Some factors to consider, to a stabilized and matured real estate market. One is reliability, which plays a great role in the realty sector.
Source: Yash Shah, Property Sales & Leasing Manager, SPF Realty