Property prices of real estate market in Dubai

According to a report by property monitor, property prices in Dubai fell on a monthly basis for the first time in June this year. The report said, Prices fell by 0.31 percent in June compared to May, the second time in the current cycle that prices fell in November last year. The property monitor Dynamic price index, which tracks residential property price trends across 42 communities in Dubai fell 0.45 index points to 142.25 from 142.70 in May. The report said the average property price in June was 1019 dirhams per square foot. They were last at these levels during the recovery phase of the previous market cycle from July to august 2013. The report said that the slowdown and cooling of inflation should not be a cause for concern at this stage, but a welcome sign of a healthy market that can advance at a sustainable pace while growth continues. Although it was the second strongest June on record in terms of transaction volumes, which reached 8,865 according to the index. This marks a month on month, year on year increase of 34.2 percent and 38.8 percent respectively. The value of property sales in the emirates rose 55 percent to 22.7 billion dirhams in June, Dubai land department (DLD) showed. As of July 1, 2021 has reached 70.8 percent of the total sales volume.

Government initiatives in the UAE, such as the extension of the 10 year golden visa program and a new type of residence permit for retirees and remote workers, have fuelled property price increases in recent months, while a swift and effective covid 19 vaccine campaign. Making the country a safe sanctuary for investors.

In spite of high levels of interest in January, the rate of price increase in the real estate market in Dubai was predicted to slow down this year. Deal volume in Dubai from January 2021 rose more than 80 percent to 5517 last month. 

Dubai property prices have risen particularly sharply in the prime residential sector, which recently achieved a record 280 million dirhams for the most expensive home in the city. The property monitor said that it expects prices to stabilise in the second half of the year. Property monitor said that  rapidly rising interest rates, the resilience of the real estate market In Dubai as the inflation appears to be picking up, and the strength of the dirham due to the US dollar peg are surprisingly surprising and counter any headwinds. Risks are being thrown into it.

The phenomenon, although good for the market, cannot continue indefinitely, inevitably the music will slow down and so will the real estate market. As the market settles into a new cycle of more stable prices towards the end of the year, we continue to forecast softer price growth to be seen throughout the year

Property prices In Dubai can fluctuate in any way. Therefore, it is essential to consider the factors that affect the value of the property. Although, there are always some crucial factors and fundamentals that increase or decrease the property price. So before you invest in real estate in Dubai, you must understand well how Dubai real estate works. Here we have listed the key factors that affect the price of real estate in Dubai

• underemployed
• Weakening US dollar
• Location
• Economic growth
• Supply and demand
• Condition and age
• Updates and upgrades
• Interest rates
• Attainability of finance

Let us check each of those factors in detail

• Underemployed:  property values will always fall in countries with high unemployment rates. And there are many reasons to support this cause. First, unemployment creates uncertainty and uncertainty about the future. Also, when a person is unemployed, he does not have enough purchasing power to buy a new house or property. Lack of interest, unpredictability and low purchasing power reduce property prices. Dubai, in particular, has the lowest unemployment rate. Expats and permanent residents earn good money. As a result , more people are interested in purchasing property in Dubai when the price rises
• Weakening US dollar: the US dollar is one of the main factors that significantly influence property prices. We have noticed on some points that the Dubai real estate market changes whenever the value of the US dollar rises or falls. For example, from the end of first quarter of 2014 to the beginning of 2017, the value of the US dollar showed a sharp decline of 29 percent, leading to a decline in residential values of Dubai. In contrast, from the beginning of 2017 to April 2078, the strength was around 12 percent. Also, we noticed that the demand for the Dubai real estate market increased during this period. 
• Location: location is one of the major contributing factors. Dubai Is a big cosmopolitan city and you will find people from every race, color and heritage. Also in Dubai, you can find different types of houses. From luxury villas for sale in Dubai to apartments for rent in AL farjan, you will have plenty of options to choose from. Location is one of the main factors that influence the price of a property in Dubai. Your current location may be the best option for you as it takes a few minutes to reach the office. But when it comes to appraisers, the property is valued based on different factors. If you are curious about the factors, you can go through the below points 

•  The quality of local schools
•  Career opportunities
• Presence to shopping , entertainment and recreational centres

The key points we have mentioned above are the reasons why some places are in 

Higher stipulation than others. Also airports, public transport and highways also play a vital role in influencing the price of a property. Last but not least, if you are purchasing a house in Dubai and you can find all these facilities in a reasonable budget, then you are truly the most fortunate

• Supply and demand: supply and demand always play a crucial role in determining property prices in Dubai. As with any other industry, when demand increases, so do prices. When it comes to the real estate market in Dubai, more buyers are showing interest in buying a house and the price of the property will rise. Also real estate brokers in Dubai will have more opportunities to earn commission. In a flip of coin, if there are no buyers in the market, the price will fall down. 
• Condition and age: the strategy does not apply to the real estate market in Dubai but to the overall property market worldwide. Newly built places are expensive and high in value. This is because a new home has almost everything newly built, from the roof to electrical and plumbing. Also, they have a longer lifespan and take years to breakdown
• Updates and upgrades:  progress also determines the price of a property in Dubai. If your house is in poor condition, the price of the property will be lower than a house with better amenities. You can add value by remaking the kitchen or adding an entire bathroom for smaller homes. Adding a pool or hardwood floors to larger homes can increase the price of property.
• Interest rates:  property in Dubai is one of the most preferred properties by investors from an investment point of view. This is because over the past decade or two, Dubai has been one of the fastest growing markets, which means investors can expect better returns in terms of profits. Although it is essential to consider interest and mortgage rates. If the interest rate is high the demand for the property will decrease and will directly  bring down the property value
• Attainability of finance:  the real estate market in Dubai is expensive. So most of the customers purchase properties for sale in Dubai by borrowing money from lending institutions. Such lending institutions include banks, insurance companies, and investment banks. Brokerage firms etc. if these institutions create easy policies more and more people will be interested in taking loans and buying real estate in Dubai. On the other hand, if lending institutions are flexible with their policies, fewer people will borrow money. As a result, people do not have enough money to buy property. Therefore property owners have to lower prices to attract buyers 

Here is the list of best places to buy properties in Dubai

Whether you are looking to buy or sell a property in Dubai, you should do sufficient analysis to get the best price. Consider these variables when pricing your home to attract buyers and avoid long periods on the market that cost money. Or you can associate with the best real estate brokers in Dubai. They will give you a clear understanding of how the real estate market works