Property Finder research says real estate market dynamics are changing and property in Dubai is getting more affordable
Dubai's residential market has seen a significant shift in development and transactions from luxury to affordable units over the past few years, according to research by Property Finder.
Dubai has traditionally been perceived as a hub for luxury properties, with the emirate attracting several high-net-worth individuals from across the world who invest in second or holiday homes in Dubai.
But Property Finder said the market dynamics changing and property in Dubai is getting more affordable and is now within the reach of several first-time home buyers, who had earlier been priced out of the market.
Looking at transactional data from Data Finder, a real estate data platform of the Property Finder Group, the number of units sold in the luxury segment, both off-plan and secondary, has declined year on year since 2016.
In 2019 so far, there have been 179 residential units sold in off-plan sales over AED5 million ($1.36 million) compared to 12,403 units which were sold under AED5 million.
In the secondary market, 527 residential units sold were over AED5 million compared to 8,772 units which were under AED5 million., according to Data Finder statistics.
In 2018, there were 241 residential units sold in off-plan sales over AED5 million compared to 17,235 units which were sold under AED5 million. In the secondary market, 1,020 residential units sold were over AED5 million compared to 14,520 units which were under AED5 million.
The data shows how buyers are gravitating towards Dubai properties priced below AED5 million, which can be classified as affordable.
“Over the last few years, there has been a significant shift in development to affordable units in the residential market and the demand has been quite strong. Therefore, the majority of units developed over the last few years have all been in the affordable segment,” says Lynnette Abad, director of research & data, Property Finder.
In 2017, there were 335 residential units sold in off-plan sales over AED5 million compared to 24,570 units which were sold under AED5 million.
Abad said off-plan property sales had the best showing in 2017 owing to a slew of post-handover payment plans and other developer incentives aimed at attracting new buyers to Dubai real estate.
The secondary market did not fare too badly either in 2017, with 1,273 residential units sold over AED5 million compared to 12,725 units under AED5 million.
A year earlier in 2016, 14,591 off-plan residential units were sold under AED5 million compared to only 329 such homes sold for a value of over AED5 million. In the secondary market, 12,808 residential units were sold under AED5 million in contrast with only 1,254 such homes sold for over AED5 million.