Cheap property in Dubai
The ongoing tension in West Asia has had and is still affecting the economy of the entire world. But Dubai’s real estate sector also came under its influence. This war has left a deep dent in the sector which is known for its luxurious palace-like buildings. Data shows that real estate deals in Dubai have declined by 14% in the first two weeks of April compared to last year. This shows that the ongoing tensions in West Asia and Iran’s attacks on UAE are having an impact on the minds of buyers. The demand for new rental houses in this emirate has also decreased significantly.
The April sales figures mostly reflect deals that were negotiated and completed in or before March, when tensions in the region were at their peak. Brokers say that inquiries from buyers have increased after the temporary ceasefire announced last week, but it may take more time to finalize the deal. While big developers are still not reducing prices, small developers are offering discounts and easy payment plans.
This much property was sold in 15 days
According to Dubai Land Department data, a total of 6,535 real estate deals took place between April 1 and April 14, compared to 7,563 deals at the same time last year. This time the deals were 8% more compared to the same period last month. Dubai real estate expert Aditya Ernest John said that the environment on the ground has improved in the last few weeks, but it will take time to see its full impact in the total number of deals.
The biggest deal so far in April is AED 171 million i.e. about Rs 439 crore. This deal has been made for a very luxurious 5-bedroom apartment being built in the posh area of Jumeirah Second. Other big deals include an AED 121 million apartment being built in Downtown Dubai.
this is the deal
The number of deals in March was 13,416, which was 11.4% less than last year’s 15,145 deals. Compared to February, the figures for March were 21% less. According to real estate experts, small developers are offering discounts, paying the 4% registration fee imposed by the Dubai Land Department themselves and offering better payment plans. According to John, in some cases the properties are close to being handed over to buyers or are completely ready. A distressed deal is seen in them. These properties are being sold at 12-25% less than their highest price.
He told that mainly people living in Dubai, who earlier were not able to buy houses in premium areas due to high property prices. Now they are coming forward when the prices are low. They are now finalizing deals at a faster pace, especially for properties that are ready or soon to be delivered. On the other hand, investors looking for opportunities are waiting for further decline in prices, while sellers are still holding on to their prices.
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