The market for luxury properties in Dubai seems to be at its all time low right now and there are still some sub-markets where the prices are expected to go down even further.
So, if you are an investor looking to throw your cash out in Dubai’s property market, here is some pertinent information for you to decide if it’s the best time to invest in the luxury properties in Dubai or not.
Where The Price Trend Is Headed?
As mentioned above, the prices for luxury properties are low and it’s expected to go further down the lane.
However as far as the locations like Palm Jumeirah are concerned, the villa market is still quite there and what that means is it’s expected to pick up when it comes to the transactions, at least.
The month-to-month analysis also depicts that the luxury sector has more stable prices with no change at all in average sales prices in communities like Arabian Ranches and Mohammed Bin Rashid City.
However, luxury properties in Jumeirah had a 0.12% decline while those in Dubai Marina saw prices going down by 0.44% a few months back.
So, with the market being at bottom of this cycle, we can expect steady growth as soon as there is some stability comes to supply/demand matrix.
On the other hand, there are some believers who think that luxury properties in prime location across Dubai hardly see a decrease in their prices.
Experts say that “the market” actually refers to mass units which don’t have any individual value or USP.
So, if you own a luxury property in some well-established community, you’d definitely have an edge over the entire market.
What Are The Transactional Averages?
Stats show that transactional average price for the prime apartments available in secondary market range anywhere between Dh 2400 – Dh 2630 per sq. ft.
The average prices in off-plan market, on the other hand, lies between Dh 2160 and Dh 2840 based on their location.
As far as super prime market is concerned, the average transaction value in secondary market remains anywhere between Dh 2250 and Dh 3720 per sq. ft.
Similarly, in off-plan spaces, these values range between Dh 3100 and Dh3360.
How Different Communities Are Performing?
When it comes to the performance of different real estate communities in Dubai is concerned, the Marina, JVC/JVT and JLT have attracted a large influx of end-users and off-plan buyers lately.
On the other hand, the Downtown market is moving slowly.
As far as investors are concerned, they are looking more at the B- and C-type locations because they offer greater ROI as compared to prime locations.
For end-users, however, still the prime locations are a preferred choice and they want to invest more in Downtown and Palm Jumeirah for secondary while Dubai Hills for the off-plan projects.
As far as the off-plan properties are concerned, the beautiful beachfront apartments at Palm Jumeirah are still amongst the popular choices with developments like One Palm, Royal Atlantis and the Alef performing better than any others.
Besides, the XXII Carat Villas have also gained immense popularity among buyers. For secondary villas, investors are preferring areas like Arabian Ranches II, District One and Al Barari.
For off-plan townhouses and villas, the Mohammed Bin Rashid City, Town Square, Serena, and Al Quoz remained the popular choices last year.
However, for off-plan apartments, some brisk activity has been seen in MBR City, Downtown, JVC, Business Bay, Dubai South and the Marina.
If you’re looking at secondary townhouse/villa space, you’d be better off looking in Emirates Living, International City, Akoya Oxygen, Al Furjan and MBR City as they have seen the most transactions.
On the other hand, in secondary apartment market, the leading communities include International City, Marina, Sports City, Palm Jumeirah, Downtown, JLT, JVC, and the Business Bay.
So, this certainly is a good time to invest in luxury properties in Dubai.
Remember, however, that any units that are priced appropriately according to market expectations will see huge demand but those overpriced ones can be expected to stay on market for longer periods.