To benefit from the emirate’s prices rising to an all-time high, more and more Dubai investors and property owners are choosing to flip their homes by remodeling them and selling them for more money.
“Investors and homeowners with properties in prime and in-demand locations are electing to carry out extensive redesigning and remodeling work on properties before placing them back onto the market at a premium sales and rental price,” said Paul Kelly, operations director at Allsopp & Allsopp.
The most recent data from Property Monitor indicates that prices in Dubai have surpassed the previous all-time high from September 2014 to a record high of Dh1,271 per square foot.
As a result, in the current market, there is a 15% difference between the average seller sales listing prices and transferred property sales prices.
“With demand for Dubai real estate at an all-time high, sellers frequently place a premium on sales listing prices,” he said.
Betterhomes CEO Richard Waind predicted that more properties may become available in 2024 as sellers try to capitalize on current prices.
“Developers will also continue to launch new projects at an accelerated rate. This extra supply will likely keep the price rise we have seen over the last few years in check. For renters, there may be some relief towards the latter part of 2024, with the delivery of more new homes taking some pressure off the current rental market,” said Waind.
Due to excessive expenses in well-known and convenient locations, people are moving to emerging neighborhoods, which are still less expensive.
“Homeowners looking for greater value and space are moving from central and prime locations towards the up-and-coming Dubai suburbs and ‘new’ master residential communities such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan. These places are still affordable compared to central and prime locations,” Kelly added.