The medium priced houses got the greater buyer attention, at the same time it has also set standards for the minimum ticket value and unit sizes. As per the industry experts, ticket size is one of the most important factors in the buyer decision.
As per the luxury real estate agent, people have certain parameters in mind and they buy the property that needs their need well. For example, they are happy to buy a studio if it’s within Dh500,000 and one-bedroom apartments if it’s within Dh700,000-Dh800,000. Developers need to focus on buyer demand in order to be profitable and successful. The layout of the house along with the good size should match the required ticket price. He added, if the developer is selling one bedroom apartment size 1,200 sq ft for Dh900,000 to 1 million, the savvy buyer of today will not buy it.
In today’s world, the buyer looks at the overall price and is more interested if two bedroom size is 1,100 to 1,300 sq ft and one bedroom size is of 650-750 sq ft. The properties which are below Dh1,000 per square foot are very attractive for buyers.
Luxury Property LLC Dubai real estate broker said, budget properties are quite popular but at the same time there is a huge demand for luxury properties as well. Both of the segments have a huge target market. Moreover, you can buy a property Dh 1000 per square foot or lower in villas, apartments, and townhouses as well.
Own Instead of Rent
The lower ticket price has enabled people to shift from rent to own a villa, apartment or own house. The real estate market of Dubai has seen a downfall, but yet again it’s coming back. Though the prices have become low and have attracted the huge set of buyers at the same time.
You can find out huge townhouses and apartments within Dh 1,000 square foot and mostly projects which are off-plan. Some new projects are also coming up and there are many ready options available for the buyer at the moment.
There is a lot of heaviness on the ROI (return on investment) with the increased supply of real estate market. This is true that ROI got decreased and will do a bit in future as well for developed communities. As per the investor, buying a rental property is under huge pressure. Now the developers are focusing on rent to own properties with competitive prices. Investors are getting way too much cautious with the dropping rents and high maintenance and service charges. End users are very interested in the prospects.
The real estate market is getting mature but at the same, it is becoming challenging as well. The lower oil price and regional strains are keeping the UAE real estate market under pressure. But we can say that Dubai has not stopped from investing in order to make the infrastructure better and to be flexible. Dubai is best for long-term investment and is a true user market.
As discussed before property under DH 1,000 square foot is under high demand and it has pushed the developer to deal in houses which are affordable. The affordable houses present a good value for money for the buyer and investor as good yields of rental.
The huge demand for these affordable houses is because buyer now wants to own a house instead of giving rents. The interest rates are low and competition is high in the market, people can afford to own a house as the installment is the same as that of rent. Thus if you have some savings, the good decisions are to an own a house instead of paying rentals – which increase from year to year.
You can find these affordable houses in Dubailand and Jumeirah village circle area. There are lots of development projects and some are still under the process. In the last two years, Dubai land handed over huge property and still doing so. You can find affordable villas and townhouses in these areas.
The big names such as Dubai properties, damage and Emaar are focusing on these areas in order to develop affordable housing schemes. There is huge land which can be utilized in making affordable housing with the best attractions and facilities.
Norms of Buying
As per the Kensington Exclusive Properties chief sales officer, Mario Volpi, the current market of UAE real estate is very subtle about the price. The end users are coming to the market however the major portions of buyers are the investors.
The ROI can go up and down but still, there are developers who are promising ROI of 8 to 10%. However, to be on the safe side, the buyer should carefully read the contract even if there is ROI. Look for the developer reputation it can tell you a lot. Look for their completed property and also which is under construction.
If there is no ROI mentioned, look for the basic attractions, amenities, and facilities of the area as it will attract the huge tenants. If there are more facilities and all, it can be leased for a good price. We agree that buyer look for a low price but at the same, they look for facilities such as gym, swimming pool, and grocery stores.