According to the Knight residential index, property prices in prime locations of Dubai have reduced to 3.3% with the overall downfall of property prices in Dubai. The luxury property and residential property both have faced a decrease in property prices. However, sales of luxury property are not affected at all, which has come up as compared to the last year. As per the senior analyst Taimur Khan, prices have reduced but in prime communities, rich amenities, well development, and infrastructure have attracted the buyers which are quite positive in reduced price condition.
Trends in transaction
For the resale/ secondary residential market, the overall transaction volume was Dh13.1 billion last year which is 10% above the rate in 2018. The transaction volume for the off-plan market is around Dh16 billion which has created a lot of attraction for pre-construction buildings. According to the report, a secondary transaction related to the apartment last year was 82%. The top-performing areas were Dubai marina with the transaction of Dh3.34 billion, Palm Jumeirah Dh2.32 billion and transaction for Dubai downtown was Dh1.54 billion. These rates make 42% market of Dubai secondary residence.
Al Barari which is high-class development is offering fully furnished units to the buyers. According to luxury sales director, Andrew Cleator al Barari, Palm Jumeirah and Emirates hills are attracting a lot of buyers. As per Core Savills, transaction related to the luxury market, last year was 3% of the total volume. The emirates hills villa of 22,780-sq-ft was sold for Dh95 million and Palm Jumeirah villa of a 7,762-sq-ft was sold for Dh 84.2 million.
According to Cleator, the apartment prices in normal areas of Dubai are in the range of Dh2,000-Dh2,500 as compared to the range of Dh2,500 and Dh4,000 in prime locations of Dubai. the villa prices are low because the covered area is more. However, the villas in Palm Jumeirah, Dubai hills, and emirates hills have a different price range as per the specification and quality of the villa.
Reidin director said the price of an apartment in the prime location of Dubai is worth Dh2100 as per the square foot and villa price is Dh1,500.
However, overall the property price in Dubai is low as compared to the rest of the world such as Singapore is 40% more than Dubai, Moscow and Paris are 50% more than Dubai.
Resale of off-plan units
According to the market news, the demand for luxury off-plan units is more than the supply. The CEO of core Savills- David said the luxury off-plan units are quite good as they have amenities, easy payment plan, and good finishes. The off plan units have outmark the secondary luxury units as it is difficult for sellers to match new units with the sale terms within the area.
The investors are not really interested in the secondary market as the transaction recorded in the first quarter of 2018 is 14 as compared to 32 same periods of last year with the value of more than Dh10 million.
As per the luxhabitat news, the luxury segment transactions have shown an increase in last 2 quarter as sellers have lower down the price and are taking into consideration buyers offers. Cleator informed luxury property sellers that bring your price down as per the condition of the market if you want to sell the units.
The trend has seen within the luxury segment especially the apartments that they are becoming bigger as per the demand of clients. We have an example of alef residences where apartments size range is 5,000-15,000 sq ft, JBR apartments are in the range of 1,900-8,700 sq ft with roof ceiling of 10-ft height, volante building is comprised of 35 stories with 45 full floor and half floor apartments. The concept of large units is opposite to the recent developments in luxury segments such as Dubai Creek and Dubai hills where units sizes are not very big just like the concept used in cities such as Singapore.
Moreover, as per the real estate market news, the buyers have become more conscious in terms of value. They are not interested to invest in off-plan units unless there are benefits like profit margins, design, location, community, superb finishing, and amenities.
Moreover, now the buyers have more choices from the developers that whether they want full furnished units, core or shell as we saw in the case of 47 villas in Jumeirah gold estates and al Barari with 28 villas.
According to many, the buyers can design a home of their own choice or can choose between 4 interiors designs and 11 architectural schemes.
As per the news of Dubai land department, in 2018 total 200 different nationalities have purchased the Dubai property. According to knight frank buyers from chin, North America, East Asia, South Asia and Europe are more interested in the luxury property of Dubai.
According to the creator, mostly the buyers are from Europe and we have seen that Russians have also come back to purchase the property in Dubai. The top investors of Dubai properties are Saudi and UAE nationals and then the overseas investors from non-Arab countries.
Thus keeping the overall view in mind, the investors will see better and new forecasts in superb and ultra-superb properties of Dubai. The prime properties of Dubai in good locations will give better value if you are keeping long-term benefits in mind but the bottom property segment of Dubai will be seen with decreased supply for few coming years. Learn More