Affordability was the name of the game in the world of real estate last year, with a bigger focus on creating economical and financially feasible houses. This movement was largely driven by the increase in young, first time buyers and new people enter the market and buy residential properties.
According to a recent report, more than 82% of all the transactions that took place during the last year, they were all under the threshold of Dh2 million. Of these transactions, 47% were below the Dh1 million threshold. This is a significant shift in the market that could have a long-term impact in Dubai.
Another trend that the market witnessed during the last year was that the overall rent of residential as well as commercial properties went down significantly. This downward trend in the rental property market is a very favourable sign for the residents of Dubai. This means lower cost of living because properties in Dubai can be very expensive to rent.
The rules of the game didn’t change, just the price tag. Dubai is known for high-quality materials that are used in the construction and interiors of the property. Despite the rental market and overall property rates saw a decline in the last year, the Grade A quality that people have come to expect from the Dubai property market remained the same.
This was particularly true for single-owned rental office properties owned and operated when compared to the strata buildings. Investors in Dubai are happy because this only means that the return on investment is going to be better when compared to some other markets.
Buyers, on the other hand, are acting very conscious now because they don’t want to be trapped in a bad or a false deal. Buyers are very aware of the fact that there is usually a big difference between what is affordable and what is cheap.