Industry leaders predicted on Thursday that after three years of growth, average property prices in Dubai will either stay the same or grow less.
Due to a lack of supply in the market and demand from high-net-worth individuals, the luxury segment is anticipated to grow this year, albeit still more slowly than it did last year.
“I don’t think prices will go up massively as they’re are in a decent place. I would like to see prices to be stable so that the market can digest the appreciation we have seen,” said Michael Lahyani, founder of Property Finder.
Lahyani has seen a growth in transactions of 15-20% this year, which is less than last year.
The recent quarter has seen a slowdown in prices, suggesting that the price rally of the previous few years is now stabilizing.
“We don’t go with numbers that might be inflationary. Our expectation is volumes to grow 15-20 percent and prices to remain where they are,” Property Finder chief said during a media briefing on Thursday.
“There will be a smaller increase in transactions as growth is decelerating. If we hover between 15-25 percent growth that would be great,” he said.
Lahyani added that the luxury segment can continue to see a bit of growth in price in the double-digit range.
Property Finder President Ari Kesisoglu anticipates stable transaction volumes over the next three to four months.
According to Kesisoglu, location-based pricing is extremely erratic.
“For example, if there is a location with 100 villas in total and there is only one seller. So the prices will massively go up. So average prices may not change but location will go up and down,” he added.
TURKISH UNIT MERGED WITH HEPSIEMLAK
The Turkish subsidiary Zingat of the Dubai-based real estate portal Property Finder will merge with Hepsiemlak, a Doğan Holding company in Turkey, on Thursday.
With a 20% stake in Hepsiemlak, the Dubai-based company will enter the market as a minority stakeholder and offer advisory services.
“The strategic partnership underscores our confidence in the Turkish market’s long-term potential and aligns seamlessly with our vision of expanding our market share in the MENAT region. The merger is an opportunity to be positioned more strongly in the market, capture substantial growth, and further ease millions of people’s lives with technology, which both Hepsiemlak and Zingat have a proven track record in,” said Michael Lahyani, founder and CEO of Property Finder.
Property Finder bought a minority stake in Zingat in 2017.
“We are proud to continue with our growth plans in Turkey, having first acquired all of Zingat in 2023 and now our partnership with Hepsiemlak, the leading player in our sector. Our global experience will contribute immensely to the growth and development of the sector, as well as the synergy that will be brought by the merger of two important technology pioneers in the real estate sector,” added Ari Kesisoglu, president, Property Finder.