Dubai has a complex real estate market that is ever changing, growing and evolving. There is a significant amount of wealth in Dubai, and as such, it is an appealing market for investors. Here are some of the most significant recent changes to the Dubai real estate market:
- Prices; There is an increasing amount of first time buyers and buyers who are younger, therefore, they can finance their assets over a longer term. This has had a significant impact on the prices, causing a downturn, and increasing the complexity of financing and payment schedules in Dubai.
- Off-Plan; these sales make up 2/3 of all real estate sales in Dubai, and the number of off plan sales in 2017 alone increased by over 50 percent. These sales are mainly made up of smaller properties such as one and two bedroom apartments in places like Business Bay.
- The next biggest chunk of sales comes from the secondary market where the prices are established and supply is very limited. The sales are getting lower and lower because of more appealing prices elsewhere. Only 32% of sales were secondary market sales in 2017, which is in line with the steady decrease over the past few years.
- Rentals; More supply has put the pricing and rental power in the renters’ hands. This is new and a real power shift from the way it used to be, even just a year ago. Prices for rentals are therefore decreasing, and the popularity of renting is increasing and catching people’s eyes.
These are just a few of the real estate trends in Dubai. Given that the market is so vast and diverse, this is a high level overview. In order to fully or better understand the market, one would have to speak to a professional. There are many competent professionals to consult.