The Dubai Seller’s Market: A Look at Property Prices and Trends in 2024
Dubai Property Market Turns into Seller’s Market as Prices Hit All-Time Highs
Dubai’s residential property market has seen unprecedented growth over the past few years, with property prices increasing multiple times and surpassing the 2014 peak last year. This surge in prices has been attributed to the high demand witnessed in the post-pandemic period, leading to a seller’s market where property owners are capitalizing on the gains made.
Buyers who purchased property during the pandemic have seen their assets appreciate by up to 200 per cent, prompting many to sell and reinvest in new upcoming areas for better returns. Industry insiders have noted signs of a slowdown in the market, indicating that growth may reach a plateau soon.
According to Betterhomes, sellers are currently in a favorable position to take advantage of the surge in property transactions and escalating prices. Selling property in Dubai offers the benefit of zero capital gains or property taxes, making it an attractive option for investors looking to capitalize on their gains.
Toni Abou Jaoude, sales manager at Betterhomes, emphasized the importance of achieving a substantial gain when selling property, enabling reinvestment in additional properties post-sale. He highlighted that the demand for purchasing among end-users has doubled over the past two years, driven by an escalation in rental prices across the city.
Looking ahead to 2024, Mayed Alrashdi, a research analyst at Emirates NBD, pointed out potential headwinds for Dubai’s property market, including high-interest rates, declining affordability, and an increase in the supply of new units. Despite these challenges, experts believe that the anticipated increase in supply should help stabilize residential real estate prices this year.
Overall, Dubai’s property market remains dynamic, with sellers reaping the benefits of a seller’s market while buyers navigate the changing landscape to make strategic investment decisions. The unprecedented growth in property prices underscores Dubai’s resilience as a global real estate hub.
