Dubai's Property Market: A Guide for Buyers and Sellers

Dubai's real estate market is experiencing a dynamic phase of growth characterised by a steady increase in property prices and a surge in sales volumes. Currently, the average price per square foot stands at AED 1,294, according to the Property Monitor Dynamic Price Index marking a modest rise of 0.83% since January. This upward trend is projected to continue with property values expected to climb by 5% to 8% over the course of the year.

A SURGE IN SALES VOLUME

February was a landmark month for the Dubai market with a record-breaking 11,913 properties changing hands. This represents a significant 30.4% increase compared to the same period last year. Most of these transactions involved residential units including apartments, townhouses, and villas, which accounted for 92.1% of the total sales or 10,966 properties.

THE OFF PLAN PROPERTY BOOM

Off-plan properties have emerged as a major force in the market constituting nearly 57% of all sales. Despite a slight month-on-month decrease of 0.5% in January there were 6,384 off-plan property transactions which still represent a substantial 53.8% of the market share. The introduction of new communities by Emaar, such as The Heights Country Club and Grand Club Resort is set to address the current shortage of villas and townhouses, further stimulating growth.

MORTGAGE MARKET DYNAMICS

The mortgage sector has witnessed a slight downturn, with a 5% reduction in transactions. However the market remains active with new property purchases. The average loan amount for new properties is AED 1.77 million. The mortgage market is stable, but a drop in interest rates could lead to increased activity, particularly in refinancing.

Recommendations for Prospective Buyers and Sellers

For buyers: Seize the opportunity to invest in Dubai's real estate as prices are on a gradual rise. Focus on hotspots like Jumeirah Village Circle and Mohammed Bin Rashid City, where sales are booming, especially for off-plan properties.

For sellers: Amidst the steady demand ensure your property stands out with necessary repairs and competitive pricing. Consider listing with Union Square House for a swift transaction.