Dubai’s real estate is seeing a shift in demand towards more affordable mid-market communities, according to a new report.
dubizzle Property and real estate consultants JLL have released their End of Year Property Report for 2017 which showed sales leads for properties under AED1000 per sq ft are up by 24 percent over the past year.
It said that in September, over half (57 percent) of residential property for sale listings on dubizzle Property was in the mid-market segment and received two thirds (66 percent) of total leads.
The report also showed an increase in price per sqft in more newly developed communities’ year-on-year, such as Jumeirah Village Circle (8.2 percent), Liwan (3.9 percent) and Dubai Sports City (4.9 percent).
dubizzle Property, which has over 150,000 listings and registers over 3.7 million visits per month, said there is a distinct focus from agencies and property seekers on the mid-market segment.
“Developers in Dubai announced 16 new projects this year – several of them were in the mid-market segment offering attractive payment plans. Agencies who are focused on off-plan sales and have inventory that falls under the less than AED1,000 per sq ft bracket are likely to see gains here,” said Samer Abdin, general manager, dubizzle Property.
In September 2016, 52 percent of residential property for sale listings on dubizzle fell in the mid-market range while this increased to 57 percent a year later.
Craig Plumb, head of research, JLL MENA, said: “The Dubai residential market has remained relatively soft during 2017, while there has been little change in average sale prices, rents have continued to decline in most locations. This disguises variations between different communities and different sectors of the market.
“The most significant changes in the structure of the market during 2017 have been the growth of off-plan sales and a continued focus on the affordable or mid income sector.
“The sales market appears to be close to the bottom of its current cycle, with little further decline anticipated in 2018. The rental sector may, however, see further weakness as the market moves further in the favour of tenants, making Dubai a more competitive and attractive city in which to live”
He added: “One of the largest challenges to the residential sector in 2018 is the threat of potential oversupply. Over 120,000 units have been launched for completion by the end of 2020 and if all these projects were to proceed the market would definitely experience an oversupply.”
Source: “Arabian Business”