DUBAI PROPERTY MARKET UPDATE AUGUST 2019
As expected the market has remained consistent since my last report, prices are continuing to fall but at a slower rate than the past 12 months. The gap between listed and sold prices is closing, last year I reported, in most cases, was between 15-20% of what sellers were asking against prices which properties were actually sold for. In today’s market, we are seeing a difference of less than 10%, which is mainly due to sellers and landlords adjusting to the current market demand.
For example, on the secondary market, you can find listed today on justproperty.com over 20 listings for 1 bedroom apartment in Marina Pinnacle Tower for circa AED650,000 and the last property that transferred on the 4th August was sold for AED600,000, a negotiated difference of only 6.25%. On the Palm Jumeirah a Tiara Residence, one-bedroom apartment sold for AED1,630,000 on the 22nd July and currently there is a property listed to the same specification for AED1,789,000, a difference of 9.75%.
Off-plan sales from 19th July – 18th August 2019 surpassed secondary sales by 78 transactions with 1,246 sales, Emaar achieved the most sales with an overall market share of 25%, whilst close in 2nd Dubai Properties had 16.6% of the total sales in this period.
Emaar’s average sale price for apartments was AED1,607 per sq ft and they transacted a total of 27.9% of the market share for apartments whilst Nakheel registered 52 sales giving them the 2nd most sold apartments in this period at AED873 per sq ft.
Dubai Properties sold the most villas and townhouses with a majority share of 44.7% of sales at an average price per sq ft of AED746. Emaar was second with a 21.8% share, average price AED846 per sq ft.
Off-plan still remains the most appealing to investors, which proves the confidence in the market in the coming 2-3 years when we expect the supply to reduce rapidly by Q4 2021. In conjunction with great payment plans for properties from Developers, the Dubai Government are working on many ways to attract new residents and companies to relocate to the Emirate.