Hello Something is happening in the Dubai property market Between the 29th May 2020 and today, there have been 6,861 residential sales transactions in Dubai, 4,200 were apartments and the remainder townhouses, villas while almost 40% were off-plan. 71 of those properties sold for over AED 15,000,000 25 sold for over AED 25,000,000 60 of those 4,200 apartments had ticket prices of over AED 5,000,000 24 Villas on the fronds of the Palm Jumeirah have sold in the last 90 days at prices ranging from AED 7m to 33m – try finding one for sale now, our agents are telling me that there is now a shortage and prices are increasing. 300 three and four bedroom townhouses ranging from AED 1.3 to AED 1.85m in phase III of Tilal and Ghaf were released last Saturday and were completely sold out by the Monday night.
Each area or community and building is experiencing different demand and supply numbers and as all experienced investors in Dubai know, there are many levels to the Dubai Property Market The less desirable properties in older buildings which are not being managed well are still tough to sell in this market, buyers are being far more discerning. In contrast, there is a notable under-supply of quality properties available for sale now in Dubai, the distressed sellers have sold and the remainder are not accepting the low offers, they will play the medium to long game. The banks have raised the Loan to Value from 75% to 80% for residents, interest rates are low and the dollar weaker which has been good for both first-time buyers and overseas investors. Some buyers are taking advantage of the prices and the ease of borrowing and upgrading with the cost of change lower than last year. Off-plan continues to be popular though developers have released very little in 2020 and most are focusing on completing their existing projects while some have pushed back on the construction timescales by as much as a year, which will inevitably help to balance supply and demand for those completed projects The best off-plan projects have continued to sell even during the slower market conditions of COVID but as the developers are not replacing those sold units with new releases, we have a lack of inventory within some projects which are now close to completely selling out one or two years before handover. This phenomenon is creating a resale market for selected off-plan projects where villas and apartments are now selling for original prices and above. We have not seen that for a few years. Still, developers are having to compete with each other for your business and are being super flexible with deals, adjusting payment plans to suit the buyers' budgets and even extending plans way past the handover dates. Let us hope this positive trajectory continues.
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