Since the 4th quarter of 2020, Dubai has been enjoying a constant spike in interest in its real estate sector with more and more buyers returning to the market. Off-plan properties’ segment always remained the most favourite one for potential investors but this time the realty market is showing a dramatic transition. Despite experiencing the economic downturn due to the global pandemic, a number of property portals have witnessed an increase in queries regarding completed or ready properties in Dubai.
What do statistics reveal?
Dubai real estate market witnessed record 3,787 sales transactions worth Dh7.43 billion in February 2021, which is 13.8 percent more than January in terms of volume and 8.9 per cent more in terms of value. According to the official sales price index of the Dubai Land Department, the total this year up until the end of February is 7,114 sales transactions worth Dh14.2 billion. It shows buyers’ confidence is returning to the sector and more and more number of buyers signing on the sales contract a lot quicker than the previous records, as if the potential buyers are not ready to miss out on a property, they pick.
What does this trend mean?
The further break down of this trend indicates that the majority of deals are closed for the ready properties available in the market, as compared to the previous favourite i.e. off-plan properties. “When we look at the volume of transactions, the off-plan market transacted 1,355 properties worth a total of Dh1.8 billion, and the secondary market transacted 4,114 properties worth a total of Dh15.3 billion. The number of off-plan transactions in February increased by 39.9 percent compared to January 2021,” it indicates.
What can be the reasons behind popularity of ready properties for sale in Dubai?
There can be several reasons behind this trend such as, the ready properties in Dubai show what buyers will get from the deal, what the property exactly looks like and where it is located – in contrast to off-plan properties. Moreover, ready properties in Dubai can readily start generating rental income, which is a need of the hour. Due to Covid-19, several people lost their jobs – thus people are looking for a stable secondary source of income and definitely, there is nothing better than rental income.
It is to note that ready properties that are of high-quality finishes and well-kept are in high demand and seeing the current spike in demand for ready properties for sale in Dubai, there may be undersupply, which can lead to an increase in the asking price of ready properties. With so much happening in Dubai real estate market, it is clear that Covid-19 led pandemic has disrupted the realty market trends and balance. For instance, both serious property buyers (looking for primary homes) and potential investors (looking to generate rental income) want to buy ready properties in Dubai and cannot risk parking their investment amount in off-plan projects and wait for the construction to be completed.
After a complete lockdown in the country, people used to spend more and more time at homes, working from home and even attending school from home. Therefore, most of them are upgrading their homes to be more comfortable, have extra space to be set up as home office and even several have been considering to move into larger spaces. Homes have become sanctuaries and not just mere places to crash after the day so the majority of end-users, who intend to live in Dubai for long, are looking to purchase their first property (which definitely cannot be an off-plan property) or planning to upgrade their residence to a larger home with more space.
What do experts say about this trend?
The real estate experts believe that the global pandemic has created some serious challenges for every sector including Dubai real estate but the majority of investors will keep looking for ready properties in Dubai and the same trend will rule the Dubai realty market in 2021. It may lead to an imbalance in supply and demand, which can directly lead to increase in the prices of ready properties in Dubai.
Another revolutionary step that is witnessed is the buyers approaching the agents to find out about premium or well-to-do ready properties in Dubai. They are more interested to know about what is available and what is about to be available. They are not ready to invest in properties that are available at lower prices but show the completion date beyond 2022. This is an encouraging step for Dubai real estate market as it can bounce back sooner than the expectations despite the global pandemic.
The loan-to-value (LTV) ratio and lower interest rates are common denominators shaping up the current market trend – because, it has never been so affordable to become a property owner in Dubai. For instance, the property prices are reduced as compared to the values of ready properties in Dubai in 2019 and not just the prices are low but buyers will have to pay less down payment to buy the same property. Therefore, if you are considering to invest in Dubai real estate market, this is the right and the most suitable time to act upon your plan and hit the right property before it goes beyond your reach.
Like everywhere, picking the right property in Dubai in the right project at the right location is what matters the most. And who can understand it better than a pro real estate agent having years of experience in Dubai real estate market? Copperstones Properties is the right choice as we have industry experts working with us, with premium projects that promise positive returns on the investment. All you need is to get in touch with us and discuss your investment plan. Our experts will come up with a personalized investment plan for you that promise the best returns.