Statistics from Propertyfinder Group suggest Dubai residents moved from renting to buying last year
The last 12 months have Dubai residents switch their rental contracts for mortgages, according to a new report from Propertyfinder Group.
Attracted by improved affordability in a real estate market that has consolidated over the last two years, as well as more generous payment plans from developers, residents have decided in increasing numbers to snap up properties in the likes of Jumeirah Village Circle, Dubai Land and Al Barsha.
Such is the popularity of places of Jumeirah Village Circle in 2017 that it was one of the few districts in Dubai that experienced a rise in asking prices, with a 4 percent uptick over the previous year. Propertyfinder also reported a doubling of the number of viewings and enquiries in the area. It still, however, remains one of Dubai’s most affordable villa communities, with prices remaining around AED758 per square foot.
Dubai Land, which has experienced a surge in villa completions in 2017, helped the area enjoy a high rate of handovers as 2,500 units were brought to market. It also remains the second-best value prices for villas, with prices remaining about the AED845 per square foot mark.
“Long-term residents are taking advantage, snapping up good deals, planting roots, and swapping their rent cheques for a mortgage,” says Lukman Hajje, chief commercial officer of Propertyfinder Group.
“Few global cities offer the opportunity to buy a well-built four bedroom free-standing villa in prime location on a decent sized block for under $1.2 million. Try doing that in London, Sydney, New York, Paris, or Geneva. Good luck.”
According to chartered surveyors Cavendish Maxwell, residential property transaction prices have traded within a close range of AED1.25 million-AED1.5 million for apartments and AED1.7 million-AED2.1 million for villas.
Thanks to the easier (than usual) payment plans, we have also seen a lot of current tenants buying off-plan units that will be complete of the course of the next two years. So as these "current" tenants move into their future homes I would expect us to see a further decline in tenant demand.