By Staff writer
New index is first ever based on live sales and rentals data
The first ever real time guide to property prices in Dubai has been launched, in a joint venture between Arabian Business and Better Homes.
The Dubai Property Index features live prices based on up to the minute data from the region’s biggest estate agent Better Homes, with the prices – for both sales and rentals – reflecting actual transactions.
The index launched today features seven key areas of the emirate - Downtown Dubai, Dubai Investment Park, Dubai Marina, Jumeirah Lake Towers, Jumeriah Village circle, The Greens and The Palm Jumeirah.
The latest prices are shown for all types of properties available in those areas, including the latest monthly changes.
Better Homes CEO Ryan Mahoney said: “This is the first time that anyone in Dubai – whether buying or renting - can get an accurate, up to the minute guide, or prices in the key areas of the emirate. Nothing else is as close to real time prices. Over the coming months, we will be hoping to roll this out across other areas of Dubai, and then eventually other cities.”
Shane McGinley, Executive Editor of Arabian Business added: “So far anyone trying to find out true property prices has had to make a judgment based on listed prices, which as we all know can be very different to the real prices. This data from Better Homes reflects what people are actually paying rather than what landlords and sellers are asking – right now, we are confident there is no better guide to prices in the market.”
But in the methodology of your index it says "The Dubai Property Index is calculated based on the moving average median prices. This includes median prices of currently available properties LISTED with Better Homes LLC in real-time."
In any event even if the above is just a typo, the problem using one agent is nowhere near representative enough of the market. E.g. when i brought my villa, Better Homes were listing the villa, along with two other firms. It was one of the firms who managed to secure me a cheaper price, and so i used them.
For this to work, and it is a good idea, you need to be working with all the brokerages.
This is a great beginning ,but still falls short of accuracy because current prices are still inline with previous contracts and not new contracts and also areas are being grouped which have different finishing standards and amenities so the you do not get the real value for any property and you may pay extra for the low end properties such as in the Greens for one example. None the less it is a step in the right direction but I would not use it or advise anyone to use it just yet. Comparing asking prices is still more accurate and realistic.
I think that the prices may be a little misleading as Better Homes is a top leading company in this field and I have found that often they cater to a slightly higher net worth individual and the properties that list are those that are at the top end of the market! Hence the cheaper properties or less well known building etc are not fully represented in the index. This finding seems to be backed up by the report itself as if you see the selling price of the 3 bedroom apartments in Down Town Dubai you will notice that they suddenly jump to 7 million plus from the price range of 3 million for a 2 bedroom> This is only happening because only certain high end 3 bedroom units are listed with better homes and those are sold and hence give a false view of the actual price of 3 bedroom apartments in Down Town.
This is a good start from better homes but I think there needs to be a compilation of 3 property companies in the field so a wider scope is given to the general public.
two relevant points here:
1. as geoffrey says, inputs are needed from all brokerages
2. why is it that the data/index is restricted to such few areas ( sadly all other areas dont find a place)
It does not make sense for a Business publication (AB)and a commercial business (BH) to share in what is essentially a marketing tool for BH. There is a conflict of interest in BH promoting this as they will have the opportunity to manipulate the figures to suit their business. Their business is based upon commissions and fees. It would have been better to have been created by Jones lang Lasalle or CB Richard Edwards as they are bona fide property consultants.
The data should come from the land department. Also listed prices is really just what owners are hoping to achieve.
I can only agree with this. We can talk about a trusty source only if it is published by RERA based on actual transaction values but not if is published by a single agency.
Everything else can not be considered as a serious source.
All Dubai tenants have to register their tenancy agreements online with Rera, so a comprehensive data base of all rental properties and their rental value can be found at Rera. The Lands Department does the transactions for buying and selling of Dubai property so a comprehensive list of transactions and values will be found here. Better Homes is not in a position to have all the data required to make this report. These types of property indexes can be made accurately by Rera and the Lands Department.
I personally believe that data from better homes cannot be presented as property index for the entire dubai market because compared to other real estate agencies in dubai better homes prices r always the highest, plus you cannot categorize by area it has to be by tower or sub communities because even that makes a huge difference in pricing the property. So i don't find it to be a very reliable source in getting ur market price.
What on earth is this? I am a property bull but why do i need real time property rates? Is the property market now a stock market with a ticker tape to flash live rates? Firstly the rates are wrong. The price for a studio is not 1.2 mil in downtown I have bought something for 900k last week.