Tuesday 24 December 2024
 
»
 
»
Story

Dubai's prime property prices 'turn affordable in H2'

DUBAI, July 3, 2019

Consumers are firmly in the driving seat, steering the Dubai real estate market to more attractive levels of affordability, according to the latest H1 market report by UAE real estate portal Bayut.

Based on the comparison of prices between H2 of 2018 to H1 of 2019 there is a perceivable shift in interest towards competitively-priced areas when it comes to renting, while historically more expensive areas for investments have become more affordable, it stated.

"As we move into the second half of 2019, the property prices in Dubai continue to be attractive for both tenants and investors," stated the Bayut in its report.

Price trends for H1 2019 reveal that apartments in Dubai have largely witnessed minimal decreases between 4% - 8% for both sales and rentals.

According to the data released by Bayut, Dubai Marina is the most popular area for buying apartments in Dubai. However, prospective tenants turn to Al Nahda as the first choice for renting flats in the emirate with Marina closely following as the second most popular neighbourhood.

Being a consumer driven market has created an environment that is conducive for lucrative property deals, which end users appear to be capitalising on, added the report.

This is in line with DLD’s recent report revealing that real estate transactions in Dubai have gone up by 33% compared to what was seen in the same period last year.

Communities such as Al Nahda, Mirdif, Bur Dubai and International City dominate the rental market, while Palm Jumeirah, Arabian Ranches, Dubai Marina and Downtown take the lead for sales.

In terms of ROI, the suburban community of International City is the most attractive as per Bayut, with impressive rental yields of up to 9.7%, said the report.

Potential investors will be happy to note that upscale communities such as Dubai Marina and Downtown Dubai show price declines over the 8% mark, offering investors a chance to invest in luxury at lucrative rates.

This can be credited to the recent new launches of numerous upcoming projects in both areas. As for apartment rentals, the most significant price decreases have been for the 1-bedroom units in Dubailand and 2-bedroom flats in Dubai Sports City at 9.1% and 8.1% respectively.

For villas, the upscale Palm Jumeirah is the most popular amongst buyers while Mirdif received the highest searches amongst renters, stated the Bayut report.

For villa sales, the only mention-worthy declines that investors should take note of are for certain units in Dubailand and Mudon.

"Most parts of Dubailand including Mudon have had a significant number of handovers in the last year, so we can expect prices to fluctuate and go up or down depending on the type of projects being delivered. More luxury deliveries can see prices go up, while reasonably priced units could bring down the overall average of these new communities," it stated.

As for rental villas, the largest decreases are seen for units in Umm Suqeim, said the UAE property portal.

In regards to ROI, apart from International City which offers the highest ROI of 9.7% for apartments, The Springs also offers 6.3% ROI for investors looking to buy villas, it added.

On the new trend, Bayut CEO Haider Ali Khan said: "The first six months of 2019 have been dynamic for the overall Dubai market. Prices have continued to drop in key areas but there are more discussions concerning property investments in the region as a result of the permanent residency and long-term visa announcements."

"Dubai is also a competitive option compared to other cosmopolitan cities such as London, Shanghai, Singapore and Sydney, offering a similar standard of living at a much more affordable price point. This trend towards increased investor interest in the region is also reflected in DLD’s recent updates about real estate transactions going up by 33% in 2019 compared to the same period last year," stated Khan.

"It’s natural for every market to go through fluctuations but if end-users capitalise on resources, such as our market trends data, they will be better equipped to make more informed investment decisions," said the senior official.

"Today, consumers can take advantage of the competitive prices available now and enjoy returns as the market becomes more of a sellers market. There are some really good smart payment plans available in Dubai which are hard to find anywhere else in the world. That coupled with the new initiatives launched by the government in the past year, could lead to more expats considering the city as a long-term option, resulting in more investment in Dubai real estate," he added.-TradeArabia News Service




Tags: UAE | Dubai | affordable | prime property | Bayut |

More Construction & Real Estate Stories


Markets

calendarCalendar of Events

Partners

4580

Ads

Buy high quality China wholesale Health & Beauty , Electronics, Sports & Outdoors , Computers, Video Games, Toys & Hobbies Cell Phones, Automobiles and other wholesale products directly from reliable Chinese wholesalers or Factories on DHgate.com