Despite the price decrease, some areas of the emirate are showing steady growth.
Are real estate prices in Dubai rising during the global economic crisis? Is this really possible? All depends on the location. The Dubai market has always been extremely fragmented in relation to different categories of real estate and different areas when it comes to demand, formation and changes in Dubai house prices.
In such areas and communities of Dubai as in The Springs and the man-made Palm Jumeirah sellers are making money even today. The experts advise it is better to pay attention to micro-locations when talking about price changes than to discuss the chances of growth for the entire real estate market in Dubai.
Prices for apartments in The Springs
According to Lewis Allsop of Allsop & Allsop, there is selective growth in The Springs. For instance, a one-bedroom apartment was sold for AED 2,000,000 (USD 540,000) eight months ago. Then it was resold for AED 2,070,000 (USD 560,000). The analysts say that such activity has not been observed in this area over the past six years. Another apartment in the same community, which was previously sold for AED 1,500,000 (USD 410,000), is now for sale for AED 1,670,000 (USD 450,000).
At the same time, there are still many areas in Dubai where this price growth model does not work. It is definitely worth paying attention to such pinpoint positive manifestations. It is likely that the growth of the real estate market will begin with certain individual areas and communities or types of real estate. Nowadays, buyers and investors in Dubai have the most favorable conditions for investing in real estate. The down payment is the lowest in the last six years. The mortgage payments per a month are sometimes even lower than the rent per a month. This has allowed many people to think about buying a property in Dubai.
Prices for villas in Palm Jumeirah
The man-made Palm Jumeirah, where super-premium villas are currently being sold ranging from AED 120,000,000 (USD 32,670,000) to AED 200,000,000 (USD 54,450,000), arouse high interest from buyers who want to have time to get a little more within their budget than was previously possible. As brokers say, there are also real buyers who are looking for real estate with a budget of AED 7,500,000 (USD 2,000,000) on Palm Jumeirah. If two months ago such buyers could choose from seven to eight properties of similar value, now the choice is more limited. All inexpensive villas on Palm Jumeirah are sold out immediately.
In this regard, some brokers say that Dubai not only does not suffer from an oversupply in the housing market, but, on the contrary, it feels an overwhelming shortage of offers in many areas. In some cases, it affects prices.
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