Prices are steadily declining in the property market of Dubai. One may think it is alarming. For a past investor, it is though there is a plus side to this.
The upside to falling prices is increase in affordability. Anyone looking at buying or renting a home in Dubai have a lot to benefit from.
When you view the chart below, you will see there is a staggering decline of 26 per cent in unit sales of villas and townhouses. Partly, it is due to fewer launches of off-plan projects and partly due to delay in project delivery.
Those who shop from secondary market are most likely to sign a deal as they are ready to move-in or to let-out.
Source: Dubai Land Department
Anyone looking at a short term gain have much to lose from the falling rental and sale prices of Dubai’s real estate. (Refer data from Infograph).
However, new home buyers, home upgraders and rental upgraders will gain by getting more space today, for the same price of a year ago. As Expo 2020 promises to attract more of the investor community, prices are predicted to rise again in two years.
With patient waiting, one may reap high return on investment and healthy rental yields in the near future.
Top Searched Building/ Areas
In spite of the volatility, villa buyers and renters have their favourites when it comes to building areas in Dubai.
For Home Renters searching premium accommodation at a beautiful location, Jumeirah 1 and Jumeirah 3 continue to charm them with their elegant villas. Victory Heights, Umm Suqeim 2 and Al Barsha 1 offer the conveniences of an established community with all the amenities at quick access.
Home Buyers have a slightly different set of neighbourhoods as their preferred location. District One at Mohammed Bin Rashid City, Sidra Villas at master community Dubai Hills Estate, Saheel, Garden Homes at Palm Jumeirah and Victory heights in Dubai Sports City are the top searched areas in Dubai to buy a villa. The convenience of location and easy access to amenities, recreation and entertainment makes these neighbourhoods as highly desired.
Top Searched Communities
One of the chief reasons people prefer a particular neighbourhood is due to its proximity to work and school area. No matter where folks end up buying a home, the first areas searched are always closer to downtown. Property prices are mostly on the higher side in these areas.
Buying a villa in these areas will cost a lot more than investing in an apartment. Hence more villa buyers will shift towards the suburbs under a gated community living.
With the slowdown in prices, a villa or townhouse becomes more affordable here. Whether it is Dubai Marina, Downtown Dubai, Palm Jumeirah, Arabian Ranches or Business Bay – these fantastic locations will give you the connectivity and convenience you are looking for.
Most Transacted Off-Plan Projects
Off-plan projects always bear the brunt of delays in handing over units to the investors. A reputed developer will however continue to attract home buyers by providing regular updates on the progress of the project and assure of adequate infrastructure and offer all amenities necessary for everyday life.
The hottest off-plan projects in Dubai currently are Villanova (Amaranta), Dubai Hills Estate, Mudon, Akoya OXYGEN and Serena. These communities offer different architecture styles and conveniences required for modern living at the right sale price. That explains the popularity with which they attract investors from all backgrounds.