High prices in popular, central locations have caused migration to new and upcoming areas, which are even more affordable.
Homeowners and investors in Dubai are increasingly opting to redevelop their properties and sell them at higher rates to capitalize on prices reaching an all-time high in the emirate.
“Investors and homeowners with properties in prime and in-demand locations are choosing to carry out extensive redesign and refurbishment work on the properties before putting them back on the market at a premium sale and rental price.”
saying Paul Kelly, COO of Allsopp & Allsopp.
According to the latest figures published by Property MonitorPrices in Dubai hit an all-time high of Dh1,271 per square foot, surpassing the previous all-time high from September 2014.
As a result, the gap between the average sales prices of sellers and the sales prices of transferred properties in the current market has reached 15 percent.
“With demand for real estate in Dubai at an all-time high, sellers often place a premium on listing prices.”
Richard Waind, CEO of BetterhomesHe said more properties could become available in 2024 as sellers look to take advantage of current prices.
“Developers will also continue to launch new projects at an accelerated pace. This additional supply will most likely keep the price increases we have seen in recent years in check. For renters, there may be some relief towards the latter part of 2024 as the delivery of more new homes will relieve some pressure on the current rental market.”
High prices in popular and central locations have caused a migration to new and emerging areas, which are even more affordable.
“Homeowners seeking greater value and space are moving from prime, central locations to Dubai’s up-and-coming suburbs and ‘new’ master residential communities such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem and Arjan. “These locations are still affordable compared to prime, central locations.”
News Source: Khaleej Times