Property market experts have highlighted some interesting trends for the Dubai real estate market in the year 2018. Real estate developers in Dubai will spark off a major trend, that of lowering apartment sizes in order to make them more affordable for buyers this year. More buyers will look for clearly defined financial value while searching for properties in Dubai. Experts also feel that this is one trend that is already observed in areas like the Jumeirah Village Circle, Dubai South and Dubailand and should spread to the rest of the Emirates as well.
Affordability will be a defining trend for 2018 but this will come at a price and this will be the apartment sizes as per several experts. Prices are a little softer at present but developers are expected to strive to keep apartment prices at levels which are quite reasonable at least. The actual sizes will naturally go down and several smaller units will be built in the Dubai real estate market. This will help developers make properties more viable for investors and end-users alike. Those looking for affordable housing units will now have to consider smaller sized units.
Other market experts feel that buyers will be more cautious while purchasing property and will be ascertaining the reputation of the real estate developer, the project location and the dates of delivery prior to negotiating the property prices. Prices may be flattening even more so one should not be selling off property right away. Renting the same out would be a better option instead at present. Prices are expected to reduce across several micro-markets although the pace of reduction will be slower than the last few years as per reports.
Transactions should be healthy for the sector in 2018, particularly for the mid-income category. Sales prices, however, may not go down hugely according to other experts. In spite of multiple planned projects for 2017, just about half of these projects expected to be completed were delivered actually by year end. This trend could be seen for the next 2-3 years since around 120, 000 units expected to be completed should be finished only by 2020-end. With the Expo 2020 contributing to major demand, all of these units will only be delivered in batches and not all housing units will be delivered in a timely manner.
2018 will give higher scope for tenants and buyers since there will be new inventory available in the Dubai real estate market. 2017 was a market for renters and property buyers with rents and property rates going down in several zones. In 2018, there will be new housing inventory at more tempting prices, thereby drawing investors and end-users towards properties spread throughout the UAE. The economic growth forecasted for the Emirates should also augur well for Dubai’s realty sector along with the increased availability of affordable housing options. On the whole, things do look good for the Dubai real estate market in 2018 according to various experts.