According to recent data, Dubai's property prices have reached 1,271 dirhams per square foot, surpassing the previous historical peak in September 2014. In response to this trend, an increasing number of property owners and investors in prime and high-demand areas are opting for extensive redesign and renovation of their properties.
According to Paul Kelly, the Operations Director at Allsopp & Allsopp, investors and homeowners with properties in prime and high-demand areas are choosing significant redesign and remodeling of their properties.
Simultaneously, data from Property Monitor indicates a 15% gap between the average asking price for seller listings and the actual selling prices of transferred properties, with sellers often pricing above the listing. This suggests that demand for Dubai real estate is at an all-time high.
Furthermore, Richard Waind, CEO of Betterhomes, anticipates an increase in available properties in 2024 as sellers seek to capitalize on current price advantages.
Developers are also expected to continue accelerating the launch of new projects, and the additional supply may temper price increases. Meanwhile, the delivery of more new units could alleviate pressure in the rental market.
Due to the high prices in popular central locations, some individuals are migrating towards new and upcoming areas in Dubai, searching for properties that offer higher value and more significant space.
They are shifting from central and prime locations to emerging Dubai suburbs and new residential communities, such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan. Compared to central and prime locations, the prices in these areas remain relatively affordable.
However, the continued rise in Dubai property prices and speculative activities may pose potential risks. Excessive speculation and speculation can lead to an unstable real estate market and social inequality.
The government should take measures to control rising prices and investor speculation while promoting housing construction on the city's outskirts to meet the growing demand for housing. Additionally, the government should support middle and low-income families in purchasing homes to reduce wealth disparity and inequality.
To achieve sustainable and healthy real estate market development, the Dubai government has implemented a series of measures. These include strengthening land supply, encouraging developers to build more middle and low-priced homes, and providing loans and subsidy programs to encourage home purchases by middle and low-income families.
Moreover, the government has enhanced regulation of the real estate market, cracking down on irregularities and fraudulent activities to ensure market stability and transparency.
