Now – or anytime in the next two years – look to be a good time to buy cheaper property in Dubai as the prices are set to fall for two more years.
Dubai property prices are likely to decline this year and next due to an oversupply of properties in the region according to broker JLL.
“We’re really not at the bottom yet,” Dana Salbak, head of Middle East research at JLL, said recently at a virtual event. “We’re likely to see single-digit declines between 5% to 8% over the next year given that supply stays under control and developers continue to phase out their projects rather than flood the market.”
Average prices have fallen by 8% last year with rents down by 12%. Which is a great thing for buyers and renters. But not so great for property owners and developers.
In total, house prices are down 30% from their high seven years ago.
The UAE government has set up a supply and demand committee with some of Dubai’s biggest developers. And some have called for their to be a halt on new projects in Dubai until life is a bit less Covid-y.
But some brokers are seeing an increase in house buying, especially when it comes to villas.
“Yes, people are buying and are leaning towards townhouses and villas. They want to own a private space that allows less interaction with other people,” says Babar Ali, Sales Director, Homesmith Estate Brokers.
Shiv Gupta, co-founder, mymoneysouq.com, agreed in an interview with the Khaleej Times. “The novel coronavirus disease (Covid-19) pandemic forced digitisation on us. It imposed a change where our homes are no longer just a sanctuary for relaxation but double up as office space, too. So, people are looking for bigger spaces, even if they are a little far off from work or city centres. They don’t mind longer commutes to work, which in most cases have been reduced to once or twice a week or less, for a space that is more comfortable.”
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