Dubai: A record number of investors have been buying property in Dubai over the last six months, fuelling one of the best years for the local real estate market. But if you are an existing property owner in Dubai, is it the right time to sell and cash some decent profits?
According to the property services firm Asteco, more owners are thinking along these lines. There has been a near 10 per cent increase in property listings during October to December, with sellers with “realistic market-driven expectations confident they will get their asking prices,” according to H.P. Aengaar, CEO.
At the Palm or over at Dubai Hills, sellers certainly are getting deals matching their expectations for their super-luxury residences. At these two prime locations, average values had gained 15-30 per cent during 2021 – and which could continue this year too.
Estate agents keep calling property owners they think who might be interested in selling their pricey homes during this upturn. “On average, I get 3-4 calls a week asking whether I’m interested in selling the four units I have on the Palm,” said one investor, who bought these between 2011-17. “All promising a quick sale and a minimum 20 per cent higher takeaway.”
So, will he sell? “I have no intention to,” he added. “I’m getting some decent returns leasing these as holiday homes.”
However, not all are thinking along those lines. Brokerage sources say that more individual investors will start placing their units for sale in the coming weeks as the current market momentum runs its course. The Downtown, Jumeirah Village, MBR City, and Damac projects at Dubailand are the spots rated as likely to attract sizeable demand.
Many potential sellers are holding back in the hope that property values will gain further and that would be the right time to make a profit.
Plus, the one thing that individual property sellers do not want to see happen is suddenly being faced with developers opening their offplan taps in full and competing on prices and sales incentives. While offplan prices tend to be slightly higher than those on ready properties, developers can sweeten their offers with extended payment schemes and fee waivers. Even throw in fixed service charges for the first few years.
Still driven by end-users
Recent property sales have started to attract investors, but the vast majority remain end-users. This has been the one constant since the start of the Dubai property market upturn from October 2020, when, first, the well-off decided they wanted to shift to new and bigger living spaces. That set off the great big sale of villas across Dubai, whether old or those getting built. If it was a villa, it was assured of a sale.
Even as developers get confident with new offplan launches, the emphasis is on selling to end-users where possible. “There has been an increase of investors in line with new project launches,” said Aengaar. “However, the number of new launches is still low and hence end-users continue to outweigh investors.
“We have seen a reduction in the decision-making timeframe for buyers on ready stock. Pricing is likely to go up further - now would be a good time to buy if you are looking for a long-term investment. The potential volatility of the market due to the pandemic does not suggest buying for short-term gains. At the end of the day, it is all about affordability and the availability of finance.”
“The current and projected market conditions are in favour of owners of Dubai residential properties if they are thinking to sell or rent their units as demand for ready property outperforms supply, especially in sought-after locations,” says Nikita Kuznetsov, Partner Metropolitan Group and CEO of Metropolitan Premium ...
Especially, those who are considering selling or renting their units as demand for ready property is higher than supply, particularly in sought-after locations. We experienced a 300 percent increase in secondary market transactions last year. Moreover, we anticipate that this growth will continue in the near future.
Dubai's real estate market offers a lucrative rental segment, making it an ideal investment destination in 2023. The rising population and influx of expatriates create a strong demand for rental properties, including apartments, villas, and commercial spaces.
Forecasts predict that the real estate sector will reach AED300 billion by the end of 2023. In 2022, sales volumes in the emirate registered AED261 billion, showing a 75 percent increase from AED149 billion in 2021.
The Dubai real estate market is steadily increasing and is predicted to increase by 46% in 2023. According to the Realiste AI data reports, It is predicted that the cost of real estate in this city will rise by 29% in 2023.
Conclusion. According to reports, there may be a slow growth in property prices in Dubai in 2023 compared to the previous year. However, this does not necessarily indicate a drop in prices.
Galtsev predicts that the real estate market in Dubai will continue to grow rapidly for another three years. “This year, 2023, will be the biggest in terms of transaction volume and property value growth. Over time, the rate of growth will decrease, but currently, it's the peak opportunity to enter this market.
“According to a recent report, the total amount of transactions in the Dubai property market has experienced a decline in April 2023, with the transaction volume amounting to approximately AED15 billion, down from nearly AED22 billion in March.
DUBAI, Jan 15 (Reuters) - Residential property prices in Dubai are expected to rise at a slower pace in 2023 after a record year that saw a more than 60% increase in total units sold, according to one of the city's biggest real estate consultancies.
Dubai is one of the world's most “affordable” luxury home markets, ranking 16th in Knight Frank's 20 global prime residential markets. The city is also emerging as a favored destination for hedge fund traders who are drawn by its ease of doing business and tax-free status.
As Dubai is experiencing a strong post covid recovery, so is its real estate market. Dubai has seen a swift economic recovery post-Covid, largely driven by a boom in the property market, increased tourism, and inflows of foreign capital.
Dubai Land Department (DLD) in its report has revealed that the real estate market has finally gotten back on track successfully in 2022 after the pandemic. Though facts and figures have already made a major revelation that 2023 is the time to buy a property in Dubai .
Conclusion: Dubai offers a combination of factors that make it an ideal location for real estate investment in 2023. Its tax-free environment, booming economy, strong tourism industry, competitive prices, and world-class developers create a safe, stable, and lucrative investment opportunity.
Real estate market in Dubai as seen a shift in its top investors in the first quarter of 2023. As per a report, British, Indian, and Russian nationals were the top investors, with Europeans and Russians overtaking those from the Indian subcontinent.
Dubai, UAE: The Dubai property market is expected to witness the biggest price growth in the world by the end of 2023, surpassing top cities such as Miami and Paris, according to a “Dubai Property Market Forecast for 2023” report.
Property prices in Dubai are enjoying its best phase ever and the current bull run in the emirate's real estate market is different from the two previous peaks in 2008 and 2014. According to a leading expert, prices are unlikely to come down in the near future.
Even though the cost of prime properties is expected to increase 50% by the end of 2023 when compared to 2021, luxury housing in Dubai is still more affordable than anywhere else in the world despite massive price growth projections.
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