Surging Prices First Time Buyers :11 Trends Shaping Dubai

Trends shaping dubai

Dubai is magnetically appealing with its ultramodern buildings  and high living standards. However for optimistic, first-time buyers, it will no longer be the dream of having a piece of that sparkling City but could turn into a nightmare.

Soaring house prices are a danger of future generations being deprived of their home before they step on their first rung of life. Will they face an unscalable cliff or there are some hidden passages that will enable mastering this market?

This investigation reflects on 11 main trends shaping Dubai property sector, postulating the challenges and making suggestions for those who believe in their dream of forming a new family in Dubai.

Get ready to confront the harsh realities and hidden possibilities, because this journey will answer the burning question: Is this dream of Dubai still a dream of first-time buyers or is the place in the sun only for a select few?

Suburban Migration 

Dubai Real Estate

Property Buyers that are more value and space oriented nowadays are relocating from well-established and prime zones  into developing the trends shaping Dubai suburbs and new master communities residential areas such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan. Here, prices are still within the reach of an average pocket as compared to central or prime locations.

The Surge In First-Time Buyers

On the backdrop of rents in Dubai heading upwards at unprecedented rates of growth that are supported by the existing high demand, the number of first-time buyers in the market at entry-level are growing with the prevailing prices ranging anywhere from Dh3 million. Suburbs are the places which accommodate numerous small apartments and Townhouses.

Prime Home Remodelling

Homeowners/investors with properties in the best location and highest demand are selectively performing either full extensive remodelling or partial renovating work on properties before reintroducing them back to market at a higher sale price or rental values.

Disconnect between seller expectations and market sales prices

Given the fact that the demand for the property in Dubai is currently at a record high, asking prices are often raised by sellers. Statistics of the real time market indicate that the average sales listing price of the property is 15 per cent higher than the current market sales prices, Allsopp and Allsopp DataHub web demonstrates the facts.

Perfect Time To Cash

As in any healthy market, the buyers and sellers may differentiate by entering and exiting the market at different times. Having been broken in November, Dubai’s 2014 record of the average price per square foot for the highest ever established in the market maintained the growth.

For some investors and homeowners, the present time might be very lucrative as they may succeed in capitalizing current market growth. For the end-user, the opposite is true.

Rent in Dubai has increased presenting a new opportunity where first timers have increased plunging demand for the residential properties within the Dh3 million price range and accounting for over 70 percent of all the residential sales transactions in 2023.

More Available Properties 

With a new subdivision getting completed and off-plan new projects in their handover stage, the search will drive higher demand from the buyer front.

As per available reports, the anticipated number of new apartment deliveries in 2024 is around 67,000 units whereas the anticipated number of new units deliveries in 2023 is around 50,000 units.

The number of units being sold in 2024 will be larger as sellers are planning to sell at the current highest price. Scientists/Engineers will continue at the top speed to soon release the next projects/will continue to release the new projects at a warp speed.

Therefore, there will be a surplus in the market of succulent vegetables, which will bring the prices down. Inevitably, the escaping renters may get consolation in the latter part of 2024 with the arrival of increasing new homes, and they may take a breather.

 

Also Read: Dubai Real Estate Market Sees Yoy Increase Of 19.9 Percent

 

Mid-Market Stability

In mid-market, it is quite likely that the regulation closely saw an influx in the rate market. Over80% of the units are completed in affordable areas like JVC, Arjan, IMPZ and Dubai Land, while the high-end units are in areas such as Mohammed bin Rashid City, Dubai Hills, Dubai Marina, and Business Bay.

This will induce the affordability areas with the pressure of raising renting price while maintaining the middle market as renting prices get less sticky. At the top of the market, with supply not controlling the demand, the situation of rents stick and prices wind up being seen.

New Ways Of Living

And with the growth of ownership there are some new trends in the sector like short-term rentals and flexible living options as different lifestyles and also career changes that are driving some technological advancements.

The current problem in the world of the tedious renting of apartments is solved by flexible living due to technology. This includes house hunting, picking one and viewing the property, managing all the details of your move-in, specifications of the apartment and maintenance request through one convenient platform. Also, tenants get space for flexible agreements and can be not binding.

Increased Diversification

The thriving areas in the first half of 2023 added new hues to the market with ready properties, blooming off-plan projects and greening up of spaces. In 2024, this is likely to be a trend that will continue with further diversity. A lot of the projects that had been abandoned were started few years back but are now in a position to be handed over.

Steady Growth In Prices In 2024

The upcoming year is forecasted with nice growing rates of up to 5% – 3.5% for the real estate properties invoved in the trends shaping Dubai. It is supported by living population growth and competitive economic surroundings which is promoted by governmental activities that attracts business and people to this country.

The emirate’s prosperous real estate industry holds the promise of more thriving growth, stimulated by both the window of smart economic incentives, as well as the presence of the working hands of the government.

Seamless Customer Experiences

Dubai development

Contemporary technology has become a way of life, and such experiences are an assumption of successful new property development. In 2020, more integration of modern technologies like 5G, AI, IoT and others will become more ominous in our homes.

Additionally, the online platforms that offer the services of buying and selling as well as renting of properties will also make the market of the property to be dynamic with the many buyers and sellers.

Conclusion

The property market of Dubai that used to be ‘the great hope’ for home ownership has turned to be difficult for those who buy their houses for the first time. The dream of home ownership is in danger of slipping out of their reach.

It only rests there hanging on by a thread.But wait! Before you give up, explore the 11 major trends shaping dubai that will lead to a radical transformation in this fast changing scene.

Get to the bottom of off-market and new prime affordability, and even a shift in buyer expectations. This isn’t just a market update; we share a pathway that will lead you to hacks, grips, and possibly refuels that desire for Dubai to remain a dream within reach, with prices beyond one’s pockets or purse.

 

 

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