Real estate growth to be spurred by affordable housing projects in Dubai

Dubai’s real estate market is expected to be majorly driven by affordable housing segments in the future. Experts indicate that more projects in this category are on the anvil for the Emirate and this may actually augur well for the real estate market in the future since this segment always draws more buyers. Entry-level buyers will naturally flock to the segment and this will increase demand, thereby boosting the overall health of Dubai’s realty sector. In fact, affordable housing projects are witnessing keen interest from global investors in China and even other buyers from Abu Dhabi and Saudi Arabia who wish to buy affordable properties in Dubai.

Mid-segment housing and affordable projects are the key market drivers of the future ahead of luxury real estate projects as per market experts. The two predominant categories have been thriving due to interest from foreign investors. There are several projects available in this space with flexible payment options from well-known real estate developers. People are now looking for higher value propositions in a market scenario where rentals for flats and villas have come down by 2-3% in Dubai while sales prices have also come down by around 4%. This indicates the fall in prices of residential properties on a year-on-year basis for Q3 2018. In this scenario, buyers will naturally look for more affordable offerings.

Chinese investors are major growth driver for this space as per reports. Real estate developers are coming up with affordable housing options across several areas and many projects are expected to be completed/delivered next year which will reinvigorate the market as per expectations. Real estate developers are also offering several freebies to buyers including discounts, lower booking fees, mortgage approvals onsite and free interior designs. There are several buyers who earn anywhere between Dh10, 000-30, 000 and want affordable alternatives to zones like Downtown Dubai which are not in their budget range.