Overseas property investors interested in Dubai property can pick up a ready-made bargain at the moment.
This is effectively newly built supply, which has been completed and still sits on the developers’ stock sheet. This property segment tends to come with flexible payment terms and the ability to negotiate on prices.
Richard Paul, head of professional services and consultancy Middle East, Savills, commented: ‘This segment holds the main draw for today’s buyers, over and above off-plan and secondary stock. Buyers might have to wait years to take delivery of their off-plan investment while certain properties in the secondary markets are showing their age and need significant refreshment.’
Good deals can also be found on off-plan properties, but the recent slowdown in off-plan sales shows a higher percentage of buyers opting for ready-made units or units reaching completion as they prefer immediate occupation. The majority of off-plan properties being sold is sub Dh1.5 million, therefore predominantly apartments.
2018 saw the highest number of new properties come to the market in Dubai since 2011, reaching a figure of 21,700 that means property prices are likely to stay under pressure for the foreseeable future, and bargains will be available as developers fight for business to offload their ready-made stock.
The steady decline in sales prices for completed projects has increased affordability and opened the market to a wider investor pool and facilitated a rise in end-users and first-time buyers.
Although sales prices for off-plan, ready-made, and secondary properties could continue to fall in 2019, the rate of decline is widely expected to slow towards the end of the year.
Transaction volumes in the ready-made sales market, both for cash and mortgage transactions, has seen a steady increase over the last three years. The average unit prices in the secondary sales market have also shown resilience.
It is indeed still a buyers’ market with individual property owners and developers being very flexible. However, it is always difficult to pick the bottom of the market, so buying near the bottom makes sense, especially when there is plenty of choice and willing sellers.
It seems it could be time for overseas property investors to take another look at Dubai, where ready-made bargains can be had.