Dubai has seen a surge in demand for property over the past couple years, aided by an influx of a people from around the world. That’s helped the city reverse a years-long slump — prices are closing in on records, despite mortgage rates hovering at the highest levels in two decades. The sustained strength is reflected in new launches, some of which have sold out rapidly.
A three-year price rally for Dubai property has some declaring that an affordability crisis is taking shape in the UAE’s most populous emirate. It has also made for a seller’s market, as analysts predict a slowdown is coming in 2024 and investors are cashing out now.
Property prices crossed the 2014 peak last year amid unprecedented demand, fueled by surging rental prices and a rising population. Russian buyers and a post-pandemic bump have also spurred house sales in the famously safe UAE.
Sellers are positioned well, according to a study by Betterhomes, one of the city’s biggest real estate firms, and are now capitalizing on a surge in property transactions and escalating prices driven by intensified buyer demand.
Interestingly, buyers who bought property during the pandemic year have seen their assets’ prices appreciated by up to 200 per cent and many of them are now turning into sellers to take advantage of the gains achieved over the past few years.
“One of the key benefits for sellers in this swiftly expanding market is the potential for a lucrative return on investment, with property owners currently enjoying favourable rates. Additionally, selling property in Dubai offers the perk of zero capital gains or property taxes. The rapid growth in Dubai’s population further amplifies property demand and prices, creating an advantageous landscape for sellers, particularly areas with limited supply,” said Louis Harding, managing director, Betterhomes.
Toni Abou Jaoude, sales manager at Betterhomes, said optimal selling occurs when the achieved price results in a substantial gain, enabling reinvestment in additional properties post-sale.
“This serves as strong motivation for sellers to capitalise on the current market conditions and use their gains to reinvest in more properties,” he said.
A seller’s market in Dubai signifies robust demand, limited inventory and a consistent trend of delivering elevated returns to both investors and end-users, according to Toni Abou Jaoude, a Betterhomes sales manager.
