In Dubai, property buyers find ready homes costing a lot less than new launches
Dubai: A sizeable gap is starting to open up between property prices in Dubai sold offplan and those homes bought in the secondary market, creating more opportunities for buyers. On average, recent offplan launches in Dubai carry price tags that are anywhere between 14-30 per cent higher than comparable ready units – and that’s quite a difference and which could further widen.
For instance, at Dubai Hills, the average price per square foot on a home sold direct from developer is Dh1,600 compares to Dh1,400 psf for a unit bought from an investor. Dubai Hills is currently one of the most popular locations with investors and end-users alike, and with more releases coming such as the Address-branded residences from Emaar.
In Downtown Dubai, the price tag from the developer is averaging Dh2,600 a square foot against Dh2,000 from the secondary market. Much the same is happening at the Palm Jumeirah and Dubai Marina, according to data from DXBInteract.com. “The higher prices on offplan units from developers isn’t just about them asking more,” said Firas Al Msaddi, CEO of fam Properties.
There is inflation cost on building materials, and these days, more developers are adding more luxury, more features with their launches
- Firas Al Msaddi of fam Properties.
“On a per square foot basis, this is why the difference between ready and offplan is happening.”
And that’s an opportunity for buyers – especially end-users. Because with mortgage rates having risen significantly since the start of the year, buyers will have to look elsewhere to reduce their overall financial commitment. So, if they can get a mortgage on a ready home – and which is going 10-30 per cent lower than an offplan option – then end-user buyers are getting behind ready.
In offplan sales, average psf per transaction is currently at Dh1,472 compared to Dh1,262 in July 2020 and Dh935 back in July 2015.