There has been enough evidence of Dubai's real estate market going down with each year. The most recent data of off-plan residential transactions carried in the city from January to June 2018 clearly support the notion that the real estate is clearly shooting towards a downward hill. The total number of transactions carried out in those months amounted to 9,437 which is around 20% less than that of previous years during the same tenure. There could have been a high possibility of a gap being much greater if a total of 2006 home didn't sell off in the month of June. Gone are the days when Dubai's residential market was flying high, now even crossing the 2000 residential transaction mark in a month seems like a big deal!
If the similar data is compared to the previous year, things get easier to comprehend. The mark of selling 2000+ residential units was crossed more than three times just in the first six months of 2017, whereas it seems an unrivaled accomplishment up has crossed the number once in this year. These figures represent only one thing: there has been a substantial difference in the units sold when the present year is compared to the previous one. Learn factual data before choosing the right off plan for your investment.
While the sales figures are comparatively lower in relation to that of 2017, the market remains inclined towards luxury real estate in the city. Some of the luxury residential areas being the top priority include the group of islands built by Meeras, such as Bluewaters, Jumeira Bay, and several others. Builders who possess ready to live residential properties in these areas are at a greater advantage as compared to the rest of real estate market in Dubai. Numerical data shows that for those with ready deals, the best three spots included Dubai Marina, International City, and Sports City.
Among all the residential plans, ready deals in luxurious areas stay competitive. The figures remain comparable to the last years, with only a decline of 6 percent. Although the statistical data is not very positive, however, the developers in Dubai are still optimistic and hoping for the coming half of 2018. There were some factors including Ramadan which could have contributed to the slow growth of sales figures in the first six months of 2018. However, contrary to the expectation, the builders who chose to launch during the months of May and June closed their deals successfully without roaring competition from the market.
As the year progresses, the chances for market expansion are likely. According to Mr. Salman Lakhani, it is actually easy to close a deal if they're offered a pretty decent project at a reasonable price. Considering the real money terms, Dir-ham 12.13 billion was invested for off-plan registrations alone in the first half of 2018. It can be compared to that of a similar period in 2017, which was at Dh16.85 billion. Estimating percent wise, it is a rather hefty drop of 28%, discover the best off plan dubai - https://www.luxuryproperty.com/off-plan
Although the statistical data seems to plunge in the rest of the market, there are still some areas except luxury ones that aren't exactly affected by the low residential transactions. Among them, the areas include Jumeirah Village Circle, Meydan master-development with 908 and 1102 units sold respectively. Other than this, there were also a few notable places with hefty sale numbers.
The figures for ready property side were also comparatively low in relation to the average residential sales. As compared to last year, the figures were around 300 units short, with 6106 and 6464 units being sold in the year 2018 and 2017 respectively. According to Mr. Sameer Lakhani, who is the Managing Director at Global Capital Partners, there is a reasonable demand for ready space in middle-income areas including Sports City. Moreover, the interest in the luxury market is also regaining its hegemony, with localities like Downtown and Palm Jumeirah reaching unrivaled heights in sales figures for this year.
Contrasting the ready spaces in two years shows no different results. In the first half of 2017, a total of Dh 11.8 was invested in the registration of ready space properties as compared to a Dh10.4 billion worth of sale in 2017. In percent terms, the decline translates to a loss of 11% per year.
The real estate market is diving on a downward scale for a few years. The complication is not only limited to reaching the nadir of statistical data, but there are several obstacles to the growth of industry too. One of the possible stressors for the real estate market in Dubai is the ever increasing interest rates. The hikes would significantly impact on mortgage payments in future & result in a delay of settlement.
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