Reputable UAE real estate portal Propertyfinder conducted a study of a search queries for property sales and rentals offers and found that since January this year, the level of buyer’s interest has increased by 28%.
Dubai real estate market is largely formed by the end property buyer’s demand having a much more volatile nature than other, more mature global markets. Therefore, price movements both up and down can be quite extreme here. That's why savvy investors typically take a wait-and-see strategy until the market gets into the stable phase again. Last year was no exception, and when prices went down, buyers and sellers have decided to suspend transactions waiting for better times. But how can one know when the market’s hit the bottom, and when it is best to buy property?
The best indication that the market enters a period of stabilization and another price increase is analysing changes in the level of sales enquiries on most heavily visited property sites. Statistics from such sites and registration data given by official Dubai Land Department make it clearer.
Normally, potential tenant’s interest in renting considerably exceeds the interest in property sale ads. The normal ratio for these in a strong market is about 60 rental requests per 40 sale offers searches. Since 2014, the latter index fell significantly to 28%, indicating the lowering of buyer’s interest, but in 2016 it started increasing each month to almost normal levels. In February, the buyer’s interest stood at 28-29%, and by May this year it increased to 32%.
Buyers are primarily interested in highly income generating real estate options in Dubai central areas such as Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Lake Towers, etc. Also, investors are obviously targeting affordable apartments in Dubai Sports City, International City, etc.