As per experts and several reports, the property market in Dubai is expected to witness steady growth in 2019. Sales volumes have picked up again in October 2018 and this points at an imminent recovery of Dubai’s real estate market. However, price growth may be slower due to the huge influx of new housing supply in the market next year. Realty sales transaction values went up by 56% on a year-on-year basis to Dh15.7 billion for Q3 2018 and increased 18% on a month-on-month basis as per reports.
The major chunk of this increase was spurred by sales in the residential real estate category with higher transaction values being seen in affordable, budget and luxury segments alike. The budget sector had slightly lower sales volumes on a month-on-month basis and the increase in residential sales was majorly spurred by the revival of 59% of off-plan sales volumes to stand at Dh2.3 billion which indicates a slight increase from the same month last year.
For this period, MBR (Mohammed Bin Rashid) City, International City and Emirates Living stood out as the best performing residential micro markets while sales volumes were slightly lower in popular areas like Jumeirah Park, Arabian Ranches and Downtown Dubai. Average selling prices throughout segments increased to touch Dh1, 315 per sq. ft. which indicates an increase of 3.8%.
With higher prices of oil and more construction expected till the 2020 World Expo in Dubai, the real estate market should continue witnessing steady growth in 2019 as per experts. Prices of property, however, may keep coming down a little due to the influx of newer supply. However, this will encourage more buyers to snap up properties at comparatively lower prices. Around 19, 881 residential units were finished in 2018 till October 2018 and another 14, 707 units are expected to be finished over the next couple of months. An additional 33, 982 units are also being constructed and 65% of this inventory should be ready next year.