The property market in Dubai currently promises good deals for investors, buyers, and renters. A recent report by Dubai Land Department (DLD) indicated that the transaction values rise, yet the price drops.
Since the latest 12 months, the price has approximately dropped 10%. Meanwhile, in comparison to last year’s Q3, the value of real estate transactions gained about 12% in 2019.
Additionally, to compare Q3 in 2018 and Q3 in 2019, there prevails a moderate declines in average sales price. That said, the declines are not identical to one another.
At the forefront of sales, Palm Jumeirah, Dubai Marina, Downtown Dubai, and Jumeirah Village Circle predominate the markets. Out of them, Dubai Marina has the throne in terms of popularity while Palm Jumeirah continuously attract the most buyers. In general, most areas display 4% up to 6% decline.
Elsewhere, areas like Al Nahda, Dubai Marina, Mirdif, Bur Dubai, and Jumeirah are the destination for renters. Al Nahda and Dubai Marina win over popularity for apartment renters, and Mirdif is more famous for its villa rentals. In addition, the average decline is around 2% to 6%.
As for the investors, Dubai Sports City and Dubai Silicon Oasis are picturesque for investment purposes. However, only minor price decreases exist.
Oversupplied Dubai Property
The main cause of the price decline in Dubai Property is oversupply. With a considerably significant increase of property supply in 2019 compared to 2018, almost no areas receive no such pull.
Asteco, Dubai property management company, notes a total of 20.000 apartments and 7.500 villas deliveries in 2019. Accordingly, those are a significant increase from 2018 which disclosed 12.000 apartments and 2.750 villas deliveries.
Property website Bayut also covered the oversupply and price decline. “We have also observed record-breaking traffic on Bayut with the total views exceeding 88.5 million in the first half of 2019. This points to a steady interest from home buyers and investors in the Dubai property market,” Haider Ali Khan, CEO of Bayut, said.
“We’re also seeing the Dubai government take proactive steps to safeguard the interests of investors and tenants and put forward policies to ensure value and competitiveness in the real estate sector,” he added.