In a classic buyer’s market scenario, average selling prices for housing units in Dubai have come down, touching Dh1.2m in the case of apartments as compared to Dh1.32m last year. Villas now have an average selling price of Dh1.9m according to reports. Buyers in Dubai are looking for bargains as per the prevailing sentiment. The average prices of transactions in the third quarter of 2018 were lower compared to the average in the same period last year as per reports.
Average deals for the third quarter were around Dh1.2 million for apartments and Dh1.9 million in case of town homes/villas. However, average transaction prices for apartments last year stood at Dh1.325 million while they were Dh2.45 million for town homes/villas according to studies. 26% of off plan transfers in the third quarter for apartments were largely between Dh1, 200-1, 500 per sq. ft. In case of ready to move properties in Dubai, average pricing stood at Dh500-800 per sq. ft. One bedroom units and studios were the housing units most in demand in this period, both across secondary and off plan categories.
The lower pricing can be attributed to buyers who are more conscious about property costs and are looking for homes in areas like Jumeirah Village Circle which will have more than 1, 500 new units added by the end of the first quarter of 2019. Additionally, end-users are dominating the market right now which is another reason behind the lower prices. Dubai is more of a buyer’s market at present and this makes it a good time to invest in property here. End-users are also buying more property in emerging locations where prices are lower. There are several developers who are also offloading unsold inventory at discounted prices along with freebies like waivers of Dubai Land Department fees and locked-in service charges.
72% of the upcoming housing supply in the next 6-7 months will be delivered in the fourth quarter of 2018 as per reports. New supply levels will also be higher in areas like Sports City, Business Bay, Nshama’s Town Square multi-phase venture and Silicon Oasis among others.
