Why Are New Homes Real Estate Dubai Getting Cheaper?


Depending on the state of the property market, new homes real estate Dubai can be a hit or miss thing. Each time prices fall due to unforeseen factors it impacts the whole real estate business.  For buyers it is a good thing to invest in long term real estate but it will not be the same case for property developers seeking immediate profit. Remember what happened to the Dubai-based developer Triveni Builders and Promoters back in 2011? Their 2008 project La Fontana di Trevi residential development, failed to sell because of the poor market conditions from the economic crisis. In 2011, they were forced to sell their apartment housing stock at a discounted price below actual construction cost.

Impact of Market Conditions

Keen-eyed and market savvy buyers bought the Dubai cheap houses for sale, and when the market state stabilized, they were able to gain a huge profit from the resell in the later years. What happened was a total bust for property developers but a boon for the buyers. The situation did happen again in 2015 not just the result of bad market conditions but factors like construction delays. Nearly a third of new homes completed that year were empty and brokers were compelled to lower their price estimates in the end. The watch and wait stance of the developers who expected better returns have backfired. During the last quarter of 2015, the house prices dropped a further 4% whilst apartment and villa prices were cheaper by 16% and 14% respectively compared to the previous year. This is again a good thing for real estate property buyers.

The Effect of Expo 2020 on Real Estate Prices

It is a smart move to procure a house for sale in Dubai for cheap right now before the upcoming Expo of 2020. They are cheap at the moment but not for a long time since the market is continuing to bottom out. We are experiencing another rise in the property cycle with prices getting better year after year leading to the Expo. Purchase a property for cheap, wait for the inevitable price increase, and then sell for huge profits. The2017 market is quite stable and more mature unlike the 2008-2009 market. Regardless the dip of property prices, real estate rental yields are also booming. The lack of properties to meet the demands of a growing population drove rental prices up. This is another advantageous situation benefiting current property owners who rent their real estate whilst waiting for the right time to sell them at premium prices.


Tags: house for sale in Dubai for cheap, Dubai cheap houses for sale, new homes real estate Dubai



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