Dubai Realty Set To Make A Comeback In 2019
There has been a positive shift in Dubai’s realty market in the year 2018, despite the fact that sales volume remained soft. Experts believe that the momentary pause in the year will lead to a stronger 2019. Will 2019 be a comeback year for Dubai realty?
A look into the transactional activity of off-plan and ready units reveals that the market was fairly balanced in 2015; this changed dramatically by 2017 when the ratio of off-plan to ready property transactions doubled to 2:1. In 2018, we have begun to see a reversal of this trend as the ready market has largely begun to replicate the incentives that were being offered in the off-plan space. This has occurred against the backdrop of overall transactions having fallen in 2018 as the real estate market has remained sluggish.
According to recent industry reports, ready-to-move-in homes worth Dh 20.6 billion were sold from January to November-end in 2018, registering a three per cent decline as compared to the same period in 2017.
Moreover, the figure of off-plan units sold in 2018 to date is 16,031 as against 21,913 homes which were sold in the initial months of the year 2017. This shows a drop of 27 per cent.
It is estimated that with a few days left, 2018 will witness a high demand for ready properties by a relatively good margin. Such optimistic demand might incentivise the developers to stick to their deadlines and deliver the projects with future dates.
Off-plan transactions have had a difficult time keeping up with the torrid pace of 2017, but it looks like there has been a 'base effect' being witnessed, indicating a stabilisation of the demand curve at these levels. The data seems to be stating a basis for optimism going into 2019.
Business Bay takes the top spot in off-plan buying with 2,260 units sold so far this year. The Jumeirah Village Circle is also in high demand a sold 1,425 units.
Dubai Marina seems to be the most popular location amongst ready home buyers, and as per stats, a total of 1461 units were sold in the first few months of the year. Then comes the International City, where a total of 939 homes were sold in the early months as compared to last year there has been a 17% dip.
There is always a sharp rise in transactional volume as buildings start getting handed over. New locations like MBR City and Akoya - Damac Hills will see a surge shortly. Springs and Meadows is the most popular location amongst ready villa buyers, and 353 units were sold from Jan to Nov. Amongst the all set villas, the most popular site for buyers was the Springs and Meadows, which witnessed a total of 353 units sold from January until November end. Arabian Ranches, Al Furjan and Jumeirah Park are some other villa communities quite in demand!
There seem to be green shoots in the luxury space, especially in the villa space, where communities from Emirates Hills to Jumeirah Islands to Al Barari and Arabian Ranches are showing an uptick in transactional values.
Doesn’t that indicate towards an upbeat market in 2019?