Q2 2018: What happened in Dubai and London real estate
As the real estate market has already entered its third quarter of 2018, Copperstones takes a look at the major developments during Q2.
Dubai’s Q2 2018 was marked by a recorded Dh17 billion worth of real estate transactions in May. Based on figures published by the Dubai Land Department (DLD), the figure increased from around Dh16 billion in April.
The value covered both sales and mortgage transactions for land, residential and commercial property. According to the DLD, the transactions reached around Dh1.4 billion on May 23, which was the most productive business day last month.
The real estate market in Dubai has been fluctuating since 2017, with 2018 showing great signs of optimism and impressive numbers. It is suggested that Expo 2020 will be powerful enough to create another freehold boom for the market. If this prediction is true, then investors can greatly benefit from the lower prices in the market right now.
During Q2 2018, real estate developers in Dubai focused on providing affordable payment plans to attract more buyers and further activate the market. Speeding up handover dates and working through tight deadlines, increases momentum for the buyers. Some of the developers in Dubai have shown a great commitment to delivering the projects on time and making special arrangements for the buyers.
Besides the relative quiet in the market, high-net-worth individuals from China and Kenya are the latest investors allured by** Dubai’s luxury property market**. Affluent investors from these parts of the world are choosing Dubai for a second home or a vacation home, capitalizing on the flexible prices.
Dealing with this new reality, buyers should expect more stable prices. The limited new supply and a gradual increase in demand are driven by fewer off-plan launches in ‘hot’ areas such as The Palm and Downtown Dubai. It seems like for the first time since 2014, the supply of new homes in Dubai is manageable.
As regards the London market, Thomas Veraguth, the Zurich-based head of global real estate strategy for UBS Wealth Management, recently discussed with Mansion Global about the current real estate landscape. Speaking about leading markets such as London, Veraguth used the term ‘corrections’ and highlighted that markets that have slowed down are not crashing, just adjusting, and ‘self-correcting’. The expert explained how robust and resilient London is as a luxury property destination. Veraguth underlined that London will continue to be the top destination for affluent individuals with an appetite for luxury property.
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