Dubai off-plan: Through the looking glass
Source: REIDIN , Author: Posted by BI-ME staff
Posted: Tue December 13, 2016 11:54 am

UAE. A granular analysis in the overall transactional activity of the Dubai real estate market, off-plan and ready, reveals that 46% is below the 1 million mark since 2015. The off-plan and ready market share similar buying patterns in reference to ticket sizes in overall purchases.

However, in the villa segment there is a dichotomy between off-plan and ready sales. In the off-plan market, the lion share of transactions is between the 1-2 million ranges, whereas in the ready market it is in the above 2 million category. This variable highlights market preferences for more affordable communities, a choice that was considerably limited until early last year.

Within the traded units of the developers, we witness that the bulk of activity in Nakheel, Deyaar, and Damac are below 1 million, indicating that certain established communities that have catered in the affordable segment (i.e. International city, Discovery Gardens, IMPZ, and Akoya) continue to dominate at these price points. Whereas in Emaar and DP units, the majority of transactions is above the 2 million level. We expect this to gravitate lower with the introduction of lower price point items from the respected developers.
 
In the ready space the major developers account for 43% of transactions, where as in off-plan they account for 35%. The reduced weightage in the off plan space indicates a broadening of the market as more developers have entered the market offering different price points that has increasingly started to cater to the mid-market space.

To read the full report click here.

About REIDIN
REIDIN is the leading real estate information company focusing on emerging markets. REIDIN offers intelligent and user-friendly online information solutions helping professionals access relevant data and information in a timely and cost effective basis.

About Unitas
Unitas believes in in-depth planning and discipline as a mechanism to identify and exploit market discrepancy and capitalize on diversified revenue streams. The purpose of Unitas is to manage, direct, and create wealth for our clients.

 

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