The Dubai real estate market has reached record highs, leaving many property owners sitting on substantial capital gains.
However, the decision of whether now is an opportune time to sell depends on owners’ investment strategies.
Those looking to redeploy funds into other opportunities may find current market conditions favourable for divestment.
Growth rates are forecast to slow to between 4 and 5.9 percent in 2024 from 17.4 percent in 2023, so selling last year may have been optimal for profits, industry experts recently told Arabian Business .
But Dubai is still expected to outperform globally with the property market projected to grow 8 to 9.9 percent in 2024, so it could still be a good time to buy.
Experts also revealed that properties situated in prime locations near amenities with desirable views will likely yield strong returns.
Recently renovated properties or those purchased 3-4 years ago also stand to see profits. However, factors like property condition, extent of renovations, view premiums, square footage, and occupancy status can directly influence the ease of sale and potential gains.
Well-maintained, updated units in move-in condition tend to command higher prices and faster sales versus outdated or tenant-occupied listings.
That said, here are some of the best property types to sell in Dubai right now, according to experts:
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- Dubai real estate: Why consider off-plan property investment? Lower prices, flexible payment, higher returns
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Apartments, condos, townhouses – Which property types are the best-selling in Dubai right now?
“Any townhouse community with ample amenities and facilities is being sold out within a day! Likewise, waterfront apartments sell out rapidly as there are few areas left with such stunning water views,” Suchit Odhrani, Client Manager at Betterhomes, told Arabian Business.
Adding to this, Paul Kelly, Operations Director at Allsopp & Allsopp Group, explained that during the first quarter of 2024, the number of apartments sold in prime residential areas like Jumeirah Village Circle and Business Bay was 10,481, while the number of villas and townhouses sold was 2,947.
The majority of sales in Dubai were for units priced under AED3 million, particularly studio, one-bedroom, and two-bedroom units.
Off-plan properties made up 52 percent of total sales during this period, with apartments accounting for 90 percent of all transactions in this category.
“Off-plan apartments are selling like hotcakes in the market. Last year we saw a new project come up every 36 hours, and that number has become even more impressive now with new projects recorded every 17 hours,” Kelly said, adding that low-priced homes are selling more quickly compared to high-priced homes.
“These projects are significantly lower priced than properties in the secondary market. Wasl Park Views is a recent prime example of this, with all 600 units getting sold out in about 36 hours,” he said.
However, according to Odhrani, the timeframe for selling out depends significantly on the developer’s track record regarding delivery and property quality.
“For example, Palm Jebel Ali was launched at AED19 million and sold out in just 6 hours, showcasing the developer’s credibility. Similarly, waterfront apartments starting at AED1.4 million in Mina Rashid and Yachts by Emaar were also sold out within a few hours due to their desirable location,” he added.
Betterhomes’ Odhrani also explained that some homes are selling quite quickly in the market right now.
“For example, The Valley launched several phases last year, and although there was inventory available for more than 2 weeks initially, as soon as Emaar started handing over the first phase of the community, the public realised the potential of the community and the futuristic amenities planned by Emaar. Consequently, the recent phase was sold out in hours, leading to an announcement of an extension to the community. Ultimately, the speed of sales depends on the product-market fit,” he said.
So, which Dubai areas are seem to be selling more property?
According to Allsopp & Allsopp Group’s Kelly, Jumeirah Village Circle, Dubai Marina, Business Bay, Downtown Dubai, and International City have recorded the highest number of buyers for apartments this year, with a total of 3,766 units sold. These top 5 areas alone account for 36 percent of the total sales across more than 90 areas.
In terms of villas and townhouses, DAMAC Lagoons, Dubai South, and Emirates Living have seen the most sales, with a total of 528 transactions recorded since January.
“Allsopp & Allsopp’s data shows UK expats rank as the highest buyers in areas such as Dubai Marina and JVC, while Jumeirah Lake Towers and Business Bay see Indian expats as their top buyers. French and German nationals are notably seen in the top five buyers’ lists across most prime areas,” he said.
Currently, there is also a notable increase in interest from buyers in the off-plan sector of Dubailand, Ordhani added.
“Examples include Arabian Ranches 3, The Acres by Meeras, California Village by GFH, and the new apartment community by MAF,” he explained.
What can Dubai property sellers do to boost sales?
“Sellers and developers must understand the target market they aim to attract with their product. Crucially, buyers are drawn to appealing payment plans and competitive pricing when making purchasing decisions,” Betterhomes’ Ordhani said, adding that the market is expected to see continued price hikes, due to shortage of homes and rise in rentals as per statistics released by authorities.
“Buyers also need to understand that new benchmarks and price points are being established, and they will not be able to secure prices from four years ago. The market is gradually expanding, with salary hikes and an influx of many new expatriates coming into the UAE,” he said.
Echoing the sentiment, Allsopp & Allsopp Group’s Kelly said that there is “increased activity in the sub-AED 2,500,000 part of the market at the moment, which we believe can be attributed to more first-time buyers entering the market.”
Kelly also called for proper preparation before entering the market plays a crucial role in the speed and success of your property sales.
It is important to conduct thorough research on the market and carefully select a reliable agent and agency to work with, he said, adding that a competent agent should provide you with relevant market data to help you make informed decisions regarding pricing your property.
“A good agent or agency will utilise their marketing, network, expertise and experience to market your property well and bring the right clientele around to view it. If you get these two factors right, everything from there should be smooth sailing. Presentation is also key here; make sure your property is clean, de-cluttered, light and airy,” he said, adding that there are two factors that are “harder to control but can speed up your sale are whether the property will be vacant on transfer and if there are upgrades. Upgraded properties tend to see higher demand.”
These considerations apply to all property types and areas, Kelly explained.
“With the highest demand we have ever seen, the market is excellent for any potential sellers. The caveat is that there is more data and information in the market than ever before, which is a good thing. How this translates to the seller is that, regardless of property type or area, you will be able to sell your property relatively quickly, so long as your approach and pricing are right. If not, the buyers will know to look elsewhere.”
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