Ready to move properties uptrend in home buyers in UAE
Home buyers in Dubai are likely to pick up a ready property in post pandemic days. With the cost of buying a home in Dubai at a 5 years low, buyers shift their attention from off plan units, as they don’t want to wait for another 2-3 years. This preference at one side, set a new trend for ready home in 2021, dropped the off plan sales by more than 30% in 2020. There was 7% increase in home purchases made in secondary market last year, while offplan sales were down 32% despite of backing it by developers, offering three to five years payment plans, freeze on service charges & waiver of registration fees at Land Department to buyers. So, the duo matters the most these days-
1. The Sale Price
2. Ready handover
And this is all because, buyers think that they will get a better bargain from an investor than from a developer. Since June 2020, secondary market monthly volumes have steadily risen, with December witnessing the highest monthly volumes in last 24 months, says a report from DLD. Moreover, the expectation is like this momentum to continue over first quarter of 2021 as the real estate market is proving to have more demand for ready units driven by end users. Keeping in mind the buyers temperament, Dubai’s developers are now cutting down on their offplan launches and focusing on handovers. Over the next 2-3 years, this is their best way to connect with buyers
Ready Homes delivered by Developers in 2020:
Emaar – 15%
Nshama – 9%
Damac – 8%
Dubai Properties – 6%
Azizi, MAG, DIRC, Deyaar – 3%
Danube, DIB, Al Wasl – 2%
Dubai South, Tiger RS, G&Co. Select – 1%
Others – 39%
Others – 39%
Hot Choices in 2021:
MBR City – 20%
Dubai Creek Harbour – 14%
Dubailand & Downtown Dubai – 13%
Jumeirah Village Circle – 7%
Dubai Marina – 5%
Dubai South – 4%
Dubai Silicon Oasis – 4%
Al Furjan – 2%
Others – 19%
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Chances of price increase are remote:
Dubai does have oversupply in residential units and that is likely to put further downward pressure on the market, so even if demand increases, the property market in Dubai is set to become more affordable in 2021. If we count on numbers, the conservative supply forecast this year is nearly 39 thousand units. However, further revisions depend on buyer confidence and an uptick in market sentiments. If prices won’t be going up soon, it will help buyers and sellers both in the secondary market, but at the same time this potentially add to the worries of developers wanting to offload their offplan units. But at the same time, developers should not miss the opportunity to widen their user base, especially when more end users could enter the property market after first signs of job stability.
With plenty of options and all time low prices, and all developer eyes are set on the buyers with exciting offers to keep the market rolling. It is an apt time to invest and buy a home of your comfort this year, and ready homes are like cupcakes these days