First-time buyers witnessed in sizable numbers across Dubai realty market

First-timers have made a comeback to the Dubai property market in recent times as per reports. Rabiah Shaikh, principal partner at Square Yards, has highlighted how buyers have increasing long-term confidence in the Dubai market while other attractive factors include a higher loan to value (LTV) ratio, lower prices and reduced rates for home mortgages. Shaikh has also stated that off-plan sales figures have been maintained decently courtesy the reduction in new project launches and discounted prices also have a part to play in higher transaction numbers. 

More buyers are upgrading their homes as per Shaikh, with prices being 25-30% lower in comparison to their peak thresholds. Buyers are also giving up their leases on existing homes and switching to larger units in other areas owing to the investment value and discounted prices. Apartment prices have reduced by 5% in localities like Discovery Gardens, Motor City and others. Dubai Marina, Business Bay and Greens have seen prices come down by 0.5-1% on an average. 

Industry players feel that first-time buyers are increasingly opting for home ownership as compared to rentals. More people are reluctant to share common amenities with others and are also drawn to the lower prices. People have greater confidence in the Dubai administration and Government with regard to handling the after-effect of the coronavirus pandemic. The outlook is stable for the property market and Dubai is still the safest place to invest across the world. This has been boosted by the pro-active measures of the UAE Government as well. 

Many global buyers continue looking at Dubai owing to the lack of suitable opportunities in other major global markets. The city has diverse property options for investors and the markets have picked up swiftly after COVID-19 restrictions started easing up from May this year. Transaction figures are witnessing high growth (month-on-month) ever since.