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Four Trends of the Dubai Real Estate Market you need to check out

by Team Techager
Four Trends of the Dubai Real Estate Market you need to check out

Real estate in Dubai

To make the right purchase it is best to ask help from an experienced Dubai real estate agency the UAE located. They know everything about the latest trends on the real estate market. Let us have a look at four of the popular trends.

Buyers in Dubai prefer villas and townhouses to apartments

The new trend has come to light especially against the backdrop of COVID-19-related restrictions. Private gardens, pools and terraces are now in the price. Social distancing has seen demand for villas, townhouses as well as hotel suites in Dubai rise by several points over the past years.

Inquiries from potential buyers who are willing to spend AED 1 million to AED 5 million or more on a private home or serviced apartment from a hotel have been on the rise since news of the virus broke. Tenants also showed increased interest in similar residential properties.

A surge in demand in at least one sector has provided the much-needed boost to the UAE real estate market, which has recently dried up influx of foreign buyers due to coronavirus-related lockdowns around the world.

Particularly popular are areas where many villas and houses with private gardens and swimming pools are concentrated, such as:

  • Dubai South,
  • Springs,
  • Jumeirah Village Circle,
  • Arabian Ranches,
  • Dubailand,
  • Town Square,
  • and Mira.

Demand for finished property is growing

Another point that has clearly manifested itself in the behavior of buyers and tenants of real estate in Dubai during the pandemic is the demand for ready-made real estate with an optimal price / quality balance.

Buyers today want to find an affordable housing without compromising its quality, because a good quality home, in addition to the obvious advantages, will also reliably protect investments in such real estate.

In addition, self-sufficient communities with developed internal infrastructure are also in demand more than others today, as the COVID-19 pandemic has made people think that staying within their own residential complex and having everything at hand can be extremely important.

Demand for ready-made apartments is currently on the rise in the real estate market as buyers are more confident in buying homes that they can move into today.

Tenants are actively changing their place of residence

Traditionally in Dubai, studios and small apartments have been the most sought after and rented out the fastest. But interestingly, the new trend in the rental property sector has been a surge in interest in spacious options: villas and large apartments. And this despite the reduction in the income of many residents and the loss of work.

Major real estate consulting agencies are reporting an increase in demand for property rentals across the city. The movement of tenants is mainly provided by those who seek to reduce their rental costs by moving to areas farther away, where you can traditionally rent more affordable housing, but more spacious, with balconies and outdoor areas.

While studios and small apartments tend to be the most sought after by tenants, between March and April 2021, the majority of rental requests were for larger apartments, especially those with terraces, verandas and other outdoor areas.

The change in tenant behavior is both remarkable and obvious at the same time. Annual rents have been reduced by around 35% for similar and sometimes larger housing options in less upscale areas. Now tenants are looking for a better value for their money. But recently there has also been a very specific surge of interest from family renters who are looking for large villas and especially spacious apartments with balconies.

With this demand, some of the company-managed rental properties have now reached 100% occupancy, especially for villas and large apartments with balconies. Experts say that such properties are the first to be commissioned since March 2020.

Lease schemes with subsequent purchase

Today, for a token down payment, or even no down payment, any Dubai resident can rent directly from a developer, keep paying rent for years, and, if they decide, eventually buy it.

Now there is no need to wait for mortgage approval from banks, and it is quite possible to get an installment plan directly from the developer on the same conditions or even better. Because today in the emirate, even the largest developers use the current lease scheme with the subsequent purchase of real estate.

However, while rent-to-purchase schemes used to be targeted in the past, today the whole area of ​​Dubai South falls under this scheme, the general developer of which became the first in the city to launch lease-to-own schemes in the entire residential community.

In many cases, e.g. on real estate projects from the developer Deyaar, the down payment is 5 or 10% of the cost of housing, and the monthly rent is from AED 2,500 to 3,000       (USD 680 – 816). And in the case of Dubai South, the developer does not even require a down payment.

Real estate agency in Dubai

Ax Capital can help you adapt to the new trends of the market. Check out their website and the specialists will provide you with all the necessary information.

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