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With the New Year beckoning,it's time to look at what Luxhabitat has to say about the Dubai's real estate market in 2018
Words by Aneesha Rai in The Market · Dec 31st, 2017
According to a supply report by Property Monitor, over 55,000 units are set to be delivered in 2018. This will lead to an increase in supply and subsequent flattening of prices. This quarter, the supply was estimated at 32,000 units; but due to unforeseeable delays, there are chances that a lot of them will eventually be ready for handover in the first quarter of 2018.
In a historic move, Dubai was the first city in the world to approve accepting bitcoins as payments for a real estate development project called Aston Plaza and Residences. The year 2018 will be the year of bitcoins and blockchain technology. The Dubai Land Department has already implemented blockchain technology on their Dubai Brokers app, allowing instantaneous electronic real transactions with just a tap.
"With transaction volumes still up year on year and a heavy demand and interest in the developed areas, it’s clear that, with the right pricing, these communities remain truly relevant in the consumer market. Due to the best spots being favoured for early development, Dubai’s first wave of build will always have the advantage of location, location, location.
As developers front load pricing in the most prime off-plan new developments, the price chasm between expensive pending unfinished stock, and the softening to lower values of homes which are ready and in settled communities is favouring a swing back towards the older areas. As long as homeowners have insulated their property value from perceived aging by undertaking well executed, tasteful contemporary upgrading and good care and maintenance, they are still very much in demand. It is interesting to note that eagle-eyed investors have already spotted the opportunity in this disparity, and while there remains a margin to acquire an older home at a good price, add value and turn it around fresh and re-purposed, they will surely take it. Expect to see a revitalisation in Dubai’s most well loved prime communities, which puts the quality of these homes back in contention."
-Sally Ann Ghai, Associate Director, Luxhabitat, as said to Propertyfinder
Besides this, due to the advent of VAT, consumers may expect to pay higher service fees on maintenance. Potential property owners can also expect to pay taxes for brokerage services. However, purchasing a property is tax exempt.
Several developers are offering flexible payment plans in order to make homes more affordable to those who want one. Investors have it easier to spread risks across their investments.
TLDR? Read our infographic here.