Dubai Property market has leaned towards a seller’s market
The housing market, like any other market, is a cyclical phenomenon moved by a number of factors such as consumer’s behavior and interest rates. As you can assume, when there is more demand and more potential buyers than homes there cause a shortage of supply, in another word, seller’s market. A buyer’s market, on the other hand, briefly means its more homes than potential buyers.
The size and scale of Dubai’s real estate market has made it attractive to many investors before and during pandemic time and now the market leans towards to seller’s market characteristics. Low interest rates and lower prices generate record setting demand this year in the market. And the interest rates are likely to stay low throughout this year and keeps introducing new consumers. Even during this recession, surprisingly, homes will be continuing to go to their new owners at a breakneck pace.
This year in January, It has been shown record breaking sales since past 13 years history in Dubai’s property market. It is due to devious fear of missing out factor plays the role when something goes sold. If a property goes sold, others who were looking at that property simply intend to find another property similar. Consequently, one successful transaction of one particular property leads to few similar properties set in demand. We can say that Springs and Victory heights are two of the most highly demanded developments since its initial phase of successful sales.
“Buyer to Seller ratio is currently almost eight to one on highly demanded projects”, a source tells. This creates a lack of options to the buyers and it bring back prices to what it was like before the appealing season.
What is more outrageous is that Customers enquiry data of Texture Property shows there are waiting lists for certain properties before they even reach to online portals such as Property Finder and Dubizzle. It’s solely because of the common sense amongst buyers just the way how its exercised in any open market. What we are witnessing is that buyers are reaching out to agencies to learn what options are coming out available rather than watching those portals to offer what’s available. It implies that how much Dubai’s real estate market matured throughout these years and consumers are confident enough to pre demand on whatever they like. It is almost like pre-ordering what new in the menu from your favorite restaurant.
First-time buyers represent 74 percent of total
LTV and low-interest rates are definitely the dominating factors encouraging buyers to step into the real estate market bladder. Meantime, first-time homeowners are representing 74 percent of the total buyers this year as LTV and lower interest rates schemes specifically designed for first time home buyers made it the best time ever happened in Dubai’s real estate market.
High-demand units are attracting many buyers considering to pay even more, while the rest are putting their names in the waiting list of their favorite projects and very few are holding off on purchasing cheaper units at the time the price slightly drops.
Are buyers impulsively interested in only what fellows are interested in? No. Study shows that highly anticipated projects are the ones those which have high-quality finishes and ready to move in (some are even fully furnished by the developer). People are not negligent enough to check the most affordable selections or those are on off-plans.
This is a big reclamation since 2014 for Dubai’s secondary, or completed property market and it’s expected to be continued its recovery or may even climb up higher until end of this year.
Also Read: Four reasons to invest in real estate today
The total number of transactions year to date is worth around 14.50 billion. February had the most sales transactions worth AED 7.43 billion which is more than half of what is already made to date. Property finder data reveals the number of transactions increased 10.2 percent more in terms of value and 15.6 percent from January in terms of volume. The number is quite high this year is also because of the massive movement of residences who would change or upgrade their rental homes during this golden period.
If you’re looking to buy a home, timing in this seller’s market could be a key concern. In the midst of what’s called seller’s market, you’ll see many properties vanish as soon as they hit the property market. Instead of contemplating on your financing ends, you should start doing your research on what is the real market trends and what is the true outcome of your potential investments, so you don’t lose out on what could be your ideal gains.
If you’d like to learn more about the newest trends in the market, Texture Properties can help you. All you have to do is go to the contact section and fill out the respective forms so that one of our consultants will approach you at your convenience.