Dubai real estate – changes from then to now
With the global economic crisis in 2008, Dubai property market also witnessed a sudden crash as investors tried to exit the market at whatever profits they still could. This led to a sudden downfall in prices and the demand for properties in Dubai. At the same time, the Dubai market was rescued by Abu Dhabi through a $20 billion emergency package. This crash not only made the Dubai market more susceptible to crashes but also made investors and property buyers more susceptible to any slowdowns.
How have things changed since then?
In the last 3-4 years, Dubai real estate has been seeing a decline in prices, although gradually. This can be partly attributed to the recent mortgage capping put in place by the authorities as well as to increase in transaction fees which are leading to lower demand. Within the last 1 year, the demand for the second-hand market has increased and therefore put pressure on the overall real estate market. However, this has not changed the attitude or the plans of the real estate developers from launching new projects aimed to target the new list of buyers.
How does this impact the new home buyers?
Since the market has slowed down and the prices are almost at an all-time low, it is the best time to buy a property in Dubai. There is plenty to choose from which will be in the homebuyers’ budget and it is a good time to negotiate to the best prices as well. A home buyer will need to be careful of the mortgage cap, the 20-25% cash deposit required and of the increasing transaction fees before jumping into the property market in the city. People with financial backing are the ones who will benefit the most from this slowdown.