Forget off-plan, now incentives are available for ready homes
There has been a steady reallocation of funds towards ready properties so far this year
With smaller developers exhausting post-handover payment plans and aggressive pricing for under-construction units, the off-plan market remains sluggish. Meanwhile, the larger developers are offering attractive incentives for ready properties. This has resulted in a steady reallocation of funds towards ready properties so far this year.
Sports City is the sole apartment cluster to record a net gain in ready property sales during the first eight months of 2018 compared with a year ago - 610 ready units were sold, more than the 525 recorded same period last year. Discovery Gardens and Motor City saw a significant decrease in the number of ready units sold from January to August this year, according to data from GCP-Reidin.
"Dubai Sports City is a desirable mid-income community that has been seeing consistent green shoots of recovery this year. High-end ready properties in Dubai Marina and Downtown Dubai as well as homes in lower-tier communities such as Discovery Gardens and International City have been seeing a subdued performance. Mid-income properties have, however, been performing well," says Sameer Lakhani, managing director of Global Capital Partners.
In all, 7,854 ready apartments changed hands in the January to August period across Dubai, not too far removed from the 8,547 sold last year. In value terms, the total up to the end of August this year would be around Dh13.5 billion against the Dh15 billion last year.
Among ready properties, villas in the Arabian Ranches, Jumeirah Islands and Emirates Living recorded green shoots of recovery in transaction numbers while those on the Palm Jumeirah performed poorly.
"There is bargain hunting in the villa space since prices have fallen to the point where they are attractive for end-users," adds Lakhani.
The ready property market seems to be catching up with last year's transactional levels while off-plan is unlikely to match the volume and value seen in 2017. In this scenario, upcoming supply is likely to be pushed even further in Dubai.
In the off-plan market, demand remains sluggish. Just over 11,540 off-plan units were sold in Dubai against the 16,506 racked up in the first eight months of 2017.
Jumeirah Village Circle (JVC) accounted for the highest number of off-plan sales, adding 1,074 units based on the GCP-Reidin data. Even then, that is 32 per cent off from the January-August 2017 period.
In value terms, the first eight months generated Dh14.9 billion in off-plan sales, far from the Dh23.7 billion sellers earned in 2017.
- deepthi@khaleejtimes.com
Sports City is the sole apartment cluster to record a net gain in ready property sales during the first eight months of 2018 compared with a year ago - 610 ready units were sold, more than the 525 recorded same period last year. Discovery Gardens and Motor City saw a significant decrease in the number of ready units sold from January to August this year, according to data from GCP-Reidin.
"Dubai Sports City is a desirable mid-income community that has been seeing consistent green shoots of recovery this year. High-end ready properties in Dubai Marina and Downtown Dubai as well as homes in lower-tier communities such as Discovery Gardens and International City have been seeing a subdued performance. Mid-income properties have, however, been performing well," says Sameer Lakhani, managing director of Global Capital Partners.
In all, 7,854 ready apartments changed hands in the January to August period across Dubai, not too far removed from the 8,547 sold last year. In value terms, the total up to the end of August this year would be around Dh13.5 billion against the Dh15 billion last year.
Among ready properties, villas in the Arabian Ranches, Jumeirah Islands and Emirates Living recorded green shoots of recovery in transaction numbers while those on the Palm Jumeirah performed poorly.
"There is bargain hunting in the villa space since prices have fallen to the point where they are attractive for end-users," adds Lakhani.
The ready property market seems to be catching up with last year's transactional levels while off-plan is unlikely to match the volume and value seen in 2017. In this scenario, upcoming supply is likely to be pushed even further in Dubai.
In the off-plan market, demand remains sluggish. Just over 11,540 off-plan units were sold in Dubai against the 16,506 racked up in the first eight months of 2017.
Jumeirah Village Circle (JVC) accounted for the highest number of off-plan sales, adding 1,074 units based on the GCP-Reidin data. Even then, that is 32 per cent off from the January-August 2017 period.
In value terms, the first eight months generated Dh14.9 billion in off-plan sales, far from the Dh23.7 billion sellers earned in 2017.
- deepthi@khaleejtimes.com
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