As the summer months draw to a close in the UAE, property prices in key markets such as Dubai often experience a dip due to seasonal demand shifts, expatriates being away on holiday, and developers’ targeted sales strategies.
This creates valuable opportunities for buyers and investors. Lower entry costs boost purchasing power, making premium living options more affordable. Renters also benefit from reduced rates and better availability, though these perks may be offset by higher utility costs and the challenges of moving during the summer.
Buyers, meanwhile, enjoy lower prices and reduced competition, but must carefully navigate market uncertainty and financial obligations. Strategic planning and thoughtful decision-making are key to capitalising on Dubai’s property market during this period.
With Dubai’s residential real estate transactions surging by 35.7 per cent in Q2 2024, totalling $33.5bn, the city continues to present unique opportunities for increased market activity and long-term investment potential.
Here are a few tips for those considering investing in Dubai’s property market:
Location, location, location
When considering purchasing or renting a property, prioritise locations that align with your lifestyle and future goals. Locations such as Dubai Marina offers a range of options for short-term rental investments, boasting stunning marina views and convenient access to amenities and transport. For long-term investment, Dubai Hills is ideal due to its strategic location, modern infrastructure, and potential for high returns.
Downtown, although one of the most expensive areas in Dubai, may become more accessible during the summer. The area offers numerous luxury apartments with top-notch amenities, easy access to major business hubs, and stunning views of iconic tourist attractions like the Burj Khalifa.
Areas in Dubai South, benefiting from enhanced infrastructure post-Expo 2020 and the new Al Maktoum International Airport, are also current hotspots for property investment.
Monitor market trends
To effectively navigate Dubai’s property market, stay informed about market trends by using property reports, real estate websites, and news updates. Reduced summer demand often leads to surprising price drops and developer incentives aimed at stimulating sales. For example, villas tend to experience slightly larger price reductions than apartments due to their higher price points and maintenance costs.
Buyers should take advantage of these trends to secure properties at more favourable prices, particularly in sought-after modern housing developments. Analyse historical data to identify the best times for purchasing or renting property, maximising investment potential. Working with specialised real estate agents covering various areas and property types can provide access to diverse listings and insights, ensuring well-informed decisions in Dubai’s dynamic market.
Consider villas vs apartments
When investing in Dubai’s real estate market, carefully weigh whether villas or apartments better suit your lifestyle preferences, budget, and long-term investment goals. Villas offer spacious layouts and privacy, making them ideal for families seeking seclusion, with amenities such as private pools and gardens. Apartments, on the other hand, provide convenience with shared facilities such as gyms and concierge services, appealing to individuals or smaller households seeking community living. While villas may require higher maintenance costs, they offer more autonomy, whereas apartments can yield better rental returns with lower upkeep.
Currently, Dubai has more apartments than villas, but Property Monitor’s H1 figures indicate significant growth in villa volume, with several developers announcing key master residential community projects that have attracted strong investor interest. Villa prices in Dubai saw a sharp rise of 22.08 per cent year-on-year in Q1 2024, while apartment prices surged by 20.43 per cent.
Consider off-plan properties
Explore developer incentives such as discounted prices, flexible payment plans, waived fees, and extras like free maintenance or furniture packages, which can enhance savings and elevate the overall value of your investment.
Off-plan properties offer substantial cost savings compared to ready properties, with attractive payment plans easing financial burdens. Ensure you research the credibility of developers and their project delivery history.
In June 2024, Whitewill reported that off-plan sales dominated Dubai’s real estate market, accounting for 58.6 per cent of transactions. Off-plan deals included 7,899 transactions worth Dhs16.67bn, compared to 5,574 transactions worth Dhs22.01bn in the secondary market. Budget-friendly areas include Jumeirah Village Circle, Town Square, and Al Furjan.
Utilise online platforms
Use online platforms such as Property Finder, Bayut, and Dubizzle to search for properties, compare prices, and explore neighbourhoods. Virtual tours and online viewings can provide detailed property information and market insights, especially during the summer when physical visits may be less feasible.
During the slower period, negotiate for better terms, such as extended rent-free periods or upgraded finishes. Be prepared to walk away from deals that don’t meet your expectations, as sellers may be more motivated to close during quieter periods, ensuring you get the best deal in Dubai’s dynamic property market.
Make an informed final decision
Before signing a lease, prioritise a professional inspection of cooling systems, insulation, plumbing, electrical systems, and structural integrity to identify potential issues and avoid future costs. Clarify repair responsibilities and review lease terms for maintenance, renewal conditions, and early termination penalties.
Consider upfront costs like down payments and agent fees, and get pre-approved for a mortgage.
Visit neighbourhoods at different times to gauge noise levels and community dynamics. Negotiate terms that protect your interests, ensuring a well-informed property decision in Dubai.
These expert tips empower buyers and renters to confidently navigate the Dubai property market, optimising their investment potential in sought-after areas while benefitting the overall UAE economy and property market.
