As Dubai’s real estate landscape undergoes a transition with moderating price growth expected next year, now may present an optimal window for property owners considering a sale, industry insiders told Arabian Business.
With a more stable 5 percent market increase forecast for 2024 against the backdrop of new supply coming into the city, “landlords might find selling their properties this year to be a more attractive option,” said Alina Adamco, Head of Sales at Metropolitan Homes. The anticipated softening in demand and additional inventory will likely weigh on values, she noted, creating a sellers’ market.
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The experts revealed there has been an uptick in listings as owners act to capitalise on current highs. “There has been a 16 percent increase in sellers coming to the market over Q4 compared to the same time last year,” said Richard Waind, CEO of Betterhomes. This surge underscores the view that the present environment represents an opportune exit point for those looking to sell.
Evidence of a recent surge in available properties signals owners are responding strategically to market conditions. While price-resistant areas like Dubai Hills and Tilal Al Ghaf still see constrained supply as sellers hold out, more choice is emerging elsewhere.
“In these areas, sellers might modify the price right after a buyer matches the initial offer, or they may temporarily withhold the sale to explore more favorable offers,” said Adamco.
Where multiple new launches have saturated certain locales, some homeowners facing financial limitations are discounting slightly to expedite sales. However, well-presented listings in general locales move rapidly due to undersupplied conditions, highlighting the merits of an optimised sale strategy.
“For property owners contemplating the optimal time to sell, the answer is clear: it is now,” added Adamco.
Long-term potential persists despite moderating gains
While a natural equilibrium is forming between rising stock and moderate price appreciation, the long-term outlook remains constructive according to experts. Projecting a 4 to 5 perfect uplift in 2024 after a 17 to 18 percent surge this year, Waind cites Dubai’s “sustained” population growth as spurring a balanced rise in real estate prices.
The emirate’s population is expected to grow from 3.5 million in 2023 to 5.5 million by 2030. This population growth is poised to drive demand for all types of real estate. And with the economy expected to sustain rapid growth, the property market will only become more lucrative.
With a huge pipeline of thousands of real estate projects already underway, more investment opportunities will arise.
For landlords, the strong yield environment averaging 6.8 percent also supports a buy-and-hold play. According to Waind, current pricing surpasses 2014 highs, indicating the validity of capitalising now or retaining assets for further returns potential. Either path requires weighing individual investment objectives against evolving real estate dynamics.
“For those looking to sell, the present moment is opportune with prices consistently on the rise for the past three years,” he added.
“If selling isn’t an immediate necessity and you’re benefiting from a strong rental income, landlords should consider the potential long-term gains.”
Dubai real estate poised for ongoing growth in 2024
In 2023, the emirate recorded almost AED391.7 billion in property sales transactions to date in what was one of the busiest years for the city’s real estate market, according to data from Dubai Land Department.
With high demand persisting across Dubai according to 2024 forecasts despite inventory gains and cooling in the rate of price growth, being positioned in the current strengthened market offers sellers distinct advantages.
In 2024, the UAE property market is expected to see more supply coming onto the market as new development complete and existing property owners look to capitalise on current price levels, according to PropertyFinder. This increased availability will help balance the market after years of price growth.
The mid-market segment is also predicted to stabilise as more affordable housing completes in areas like Dubai Land, balancing rents while upper market areas may continue seeing price appreciation due to ongoing demand.
Lifestyle changes are also driving emerging trends like short-term rentals and flexible living options that provide more mobility and convenience through technology. This allows people to avoid long commitments and easily manage rental agreements.
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