Property consultants in Dubai have signified a shift in demand to newer mid-market communities on a year-on-year basis.
In a co-authored report, property platform Dubizzle and JLL have revealed shared data about the current state of the Dubai property market, indicating a greater focus on the mid-market segment (AED1,000 and below per sq.ft.) in September 2017, compared to the same period last year.
There has also been an increase in price per sq.ft. in more newly developed communities’ year-on-year, including areas such as Jumeirah Village Circle (8.22%), Liwan (3.97%), Dubai Sports City (4.96%), Discovery Gardens (19.1%) and Remraam (8.01%).
A similar price increase trend was recorded for villas in Town Square (34.65%), Jumeirah Village Circle (3.77%) and Reem Mira (1.26%), reinforcing the increase in demand for property in this segment.
Samer Abdin, general manager, dubizzle Property, said: “Developers in Dubai announced 16 new projects this year – several of them were in the mid-market segment offering attractive payment plans.
“Agencies who are focused on off-plan sales and have inventory that falls under the less than AED 1000 per sq.ft. bracket are likely to see gains here.”
JLL data suggests that one of biggest challenges to the residential sector in 2018 will be the threat of potential over supply.
“Over 120,000 units have been launched for completion by the end of 2020 and if all these projects were to proceed the market would definitely experience an oversupply,” said Craig Plumb, head of research, JLL MENA.
“Fortunately for the overall market, the rate of materialization of these units remains low. JLL data suggests that just 53% of the 32,000 units scheduled for completion in 2017 will actually be delivered by the end of the year,” he added.