With the rapid rise in property prices, many buyers have turned into sellers, hoping to capitalize on their investments from the past few years. According to research by Betterhomes, sellers currently enjoy several advantages in a seller's market, including a surge in property transaction volume, price increases, and favorable interest rate policies. Dubai's property market has demonstrated characteristics of supply shortage, creating favorable conditions for sellers, especially in some areas.
Based on trend analysis data, Dubai's seller's market exhibits strong demand and limited inventory, continuously delivering high returns for investors and end-users. Especially in the past two years, with the unprecedented surge in rental prices citywide, the demand for purchasing properties from end-users has significantly increased, making the property market more inclined towards sellers.
Waheed Abbas
Betterhomes' sales manager revealed that property values in certain areas of Dubai's real estate market saw significant increases during the pandemic year, with conservative estimates reaching up to 50%, and even up to 200% in some areas. Downtown, District1 MBR, Jumeirah, Dubai Hills, Jumeirah Palm Island, and DIFC are considered the areas with the highest returns.
In addition to market supply-demand factors, population growth in the Emirate of Dubai and the influx of high-net-worth individuals have also propelled the development of the real estate market. According to Mayed Alrashdi, a research analyst at UAE NBD Bank, even in a high-interest-rate environment, Dubai's real estate market has remained robust, achieving significant milestones.
However, over time, Dubai's real estate market may face some adverse factors, including sustained high interest rates, declining affordability for ordinary households, and an increase in the supply of new units. It is anticipated that 2024 will see a significant supply of apartments and villas entering the market, which may help stabilize residential real estate prices for the year, but it also serves as a reminder for investors and buyers to approach market changes cautiously.
