The New Offers In Dubai Property Market

Supply of Properties

This situation will occur because there is an over-supply of several types of properties and houses like studios, 2 to 3-bedroom apartments, duplexes, simplexes, penthouses, townhouses, and villas. The demand for these types of luxurious properties may be good but the resale market is not that appealing and often selling these properties can be a very difficult task. The demand for rental properties is something to look upon and rental income is very good. So, even though the prices of the properties may not increase in the desired manner, the rental demands will remain one of the attractive things in the Dubai property market.

The different locations of Dubai have different rates for rent, whereas posh locations have more rents. There are also very attractive tourist spots in the posh locations, which have world-class hotels and expensive resorts. This attractiveness of Dubai makes it a popular location in the Gulf, where more and more people from India visit Dubai every year. 

New Plannings

In the Dubai real estate sector, developers are considering 'buyback' agreements as a new planning in their sales arsenal. The year 2024 sees a resurgence in off-plan property launches in Dubai, bolstered by aggressive marketing campaigns. A new trend is emerging where developers contemplate 'buyback' options for off-plan sales, aiming to attract more buyers. In Dubai a well-known developer, recently introduced this scheme in its luxurious housing project, offering to repurchase properties after a 5-year period, should the homeowner choose to sell. This project is connected and located near Al Maktoum International Airport.

Such buyback initiatives are gaining momentum and could become a significant factor in Dubai's property market dynamics. While developers traditionally disengage after the initial sale, leaving rental management as the only continued service, the introduction of buyback guarantees marks a new direction. Previously, developers often managed rental pools akin to 'timeshare' arrangements, allowing owners limited annual occupancy. Conversely, a buyback guarantee, especially after a 5-year term, represents a notable enhancement in developer offerings.

Potential for Profit

The Chairman of a Property company, highlights the 'Winter Deal,' emphasising its risk-free nature for buyers. This deal promises a 50% return in the first five years, coupled with a buyback option, allowing buyers to potentially profit from market price increases.

Dubai's property market has seen good increases in property prices in recent years. Where some areas in Dubai are also witnessing 20 to 40 percent growth since 2018-19. Although the rate of increase in pricing might be slow but, the trend is expected to continue for a while.

Incentives or Buybacks

Amidst growing competition, Dubai developers are now offering service charge waivers for 3-5 years on offplan launches, representing significant potential savings for buyers. However, experts advise buyers to thoroughly research service charges and property values in the desired area to ensure these offers are financially beneficial. 

Service charges in Dubai, covering building or community maintenance, have generally risen in the past year, paralleling overall cost inflation trends. This can be a downside of the property market, but it is not a deal breaker.

Conclusion

Some professionals in Dubai Housing said that the year 2024 is also a good time to buy properties in locations like Dubai Creek Harbour , Damac Hills, and JVC, but one thing to look out for is whether the project has important facilities and services or not. Off-plan properties in a popular location in Dubai are a good choice to buy.