Surging prices, first-time buyers: 11 trends shaping Dubai's property market

 

These trends provide valuable insights into the market's potential performance going into the new year

Dubai property market is witnessing unprecedented demand with prices reaching an all-time high in November 2023.

In these remarkable times, new trends are emerging in the emirate’s vibrant property market such as suburban migration, the surge in first-time buyers, prime-home remodelling, a high premium on reselling prices, mid-market stability and new ways of living among others as the local market remains buyer-dominant.

Suburban migration: Homeowners looking for greater value and space are moving from central and prime locations towards the up-and-coming Dubai suburbs and ‘new’ master residential communities such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan. These places are still affordable as compared to central and prime locations.

The surge in first-time buyers: As Dubai rents continue to grow at record levels amidst high levels of demand, there is an increase in first-time buyers entering the market at entry level with prices ranging up to Dh3 million. There is significant demand for apartments and small Townhouses in suburban locations.

Prime home remodeling: Investors/homeowners with properties in prime and in-demand locations are electing to carry out extensive redesigning and remodeling work on properties before placing them back onto the market at premium sales or a higher rental price.

New ways of living: With the rise in ownership, several new trends are emerging in the sector including short-term rentals and flexible living options, driven by evolving lifestyles, career changes and technological advancements. Flexible living solves the current tediousness of renting an apartment thanks to technology. This includes choosing and viewing a property, managing move-in details, apartment specifications, and maintenance requests through one convenient platform. Furthermore, tenants are given the freedom of flexible agreements and can avoid long-term commitments.

Increased diversification: In the first-half of 2023, the property market diversified at a rapid scale with greener areas on the block, a surge in off-plan projects and ready property purchases. In 2024, it is anticipated this diversification will continue. Many of the off-plan projects initiated in previous years will reach their handover stages.

Steady growth in prices in 2024: It is anticipated that property prices will grow at a stable rate next year between 3.5 per cent and 5 per cent for Dubai, fuelled by sustained population growth, competitive economic landscape and government initiatives attracting global businesses and individuals. The emirate’s real estate sector appears poised for continued expansion, supported by a well-thought-out combination of economic incentives and proactive government measures.

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With a strong presence in Gardenia, Rabia Enclave, and The Motorcity, the Shaikhani Group is one of the most prominent real estate developers in Dubai. Despite facing a few setbacks in the past, the company has made a successful comeback and continues to flourish. Under the Real Estate Developers Shaikhani Group banner, the company has been delivering top-notch residential and commercial properties in Dubai and Karachi for the last two decades. The company has collaborated with some of the best associates in the industry. This comprehensive paragraph provides an overview of the Shaikhani Group's accomplishments and activities.