The first event to give ground for such experts’ verdict was that first queue for housing units Dubai Properties has created by offering a unique affordable housing scheme in its Dubailand Serena project. The demand for villas and townhouses in this development was high enough to sell out all the first phase units in the Bella Casa cluster within hours after sales launch last Saturday.
Dubai property market seems to increasingly split between the two market poles: luxury and affordable. And the latter seems to run the show. A number of Dubai developers now target buyers earning AED 15,000 to 25,000 per month, while many local banks offer favorable terms on mortgages with low and fixed interest rates ensuring the monthly installments continue to remain the same over a number of years despite all world currencies’ fluctuations. That’s why, Savills’ experts called the current period the most favorable time to purchase an apartment or a villa in the emirate.
On the other hand, agencies like Allsopp & Allsopp emphasize there are two main types of property buyers in Dubai right now. While end buyers eye more affordable options, investors are generally motivated by turning a profit. And a return on investments even in the luxury real estate segment of Dubai’s market is one the worlds’ highest, that’s why luxury properties segment is not overlooked by far-sighted developers and their clients despite of its recent slowdown.
Due to its average psf property price rate Dubai is rated as the most "affordable" city to purchase a home in compared with London, New York, Hong Kong, Paris, Mumbai, Singapore and Sydney. This data was revealed by Savills consultancy last week and later confirmed by KMPG report also predicting the emirate's real estate sector will fully restore its last years’ growth rates in 2017.
Another most reliable market growth indicator is given by official statistics. Last week DLD revealed that US$ 18 billion worth real estate transactions were closed in Dubai in just 53 days of the year, which indicates about 18% upturn in buyers’ activity during the first months of the year, according to calculations made by Allsopp & Allsopp.
Not surprisingly thus, that at such a background some of the emirate’s locations are starting to show even more than average upturn. According to data revealed by Global Capital Partners, Sports City and Jumeirah Park recorded increases of 34 to 40 per cent, respectively, in the first months of 2016, while Springs and Meadows showed whooping 43 per cent plus gains.
The reason why many property buyers start transacting now is that they believe the price is right. And it means that market is gaining maturity creating the healthy property cycle of renting, buying and selling. Experts claim that what we’re seeing now in Dubai is the evolution of the property market, where people are buying homes to live.