One of the interesting trends that dominated Dubai real estate is the increased number of affordable houses sold in the year 2019. As the latest data shows, properties priced below Dh1.5 million are seen to dominate real estate transactions in Dubai.
Statistics show that there have been almost 18,900 affordable houses sold from January to September. If you compare that to around 17,000 for last year’s same period, that’s an increase of 10.9 percent.
Experts have identified some reasons behind the trend, which are:
According to the ValuStrat’s head of real estate research, Haider Tuaima, the trend will continue for many years because of the high demand for affordable housing. Not only that, but their research shows that current prices have been the same as of 2012, bringing prices to an all-time low in a decade. As a result, more and more people from the Northern Emirates are considering to move to Dubai.
To give you an idea of how affordable housing compares to more expensive properties, check out these figures:
These figures cover January to September of 2019. If you want to get more details about these data, speak to experts, learn more about “what is broker” and how they can help you.
It is worth noting that Dubai’s affordable real estate properties are not just because of the increased supply, but because Dubai has a lot of land waiting to be developed. Due to this, Dubai’s real estate prices are more affordable compared to more saturated and restricted markets such as Hong Kong, New York and London.
Moreover, according to real estate companies in Dubai, properties are sold because of the changed, more favorable payment terms and conditions for buyers. After the recession in 2008, a lot of developers came up with flexible and improved ways potential customers can make repayments. These favorable payment terms will not be removed in the near future.
While it is true that more and more people are enjoying the price drop of properties in Dubai, there is still a big portion of the population that is not able to purchase a house.
According to the Dubai Statistics Centre’s Labour Force Survey, two-thirds of people living in Dubai earns around Dh5,000 per month. This income does not meet most developers’ requirements. Most sellers would need buyers to earn an above average salary. Even off-plan properties would requrie a minimum 5-digit monthly salary to make sure the buyer can afford it.
This is the main reason why there is still a significant number of people living in shared units. Most can’t afford houses that are considered “affordable.”
With this in mind, both the government and developers are thinking of ways to better improve their services. For example, the government is taking the initiative to make housing more affordable, while developers are seeking better payment plans to accommodate low-income earners.
Because of the increased demand for affordable housing in Dubai, you might wonder if it is the right time to make an investment.
If you want to make sure that you make the right investment, Rocky Real Estate is here for you. We offer a wide range of real estate services. We have been in the business for more than four decades now. Give us a call today!