The volume of residential transaction in the last 3 months of 2016 has seen an important increase of up to 30% versus Q3 2016. With around 3,000 properties coming to market between October and December 2016, the industry has witnessed a 3% drop in apartment sales price. On the leasing side of things, prices have also seen a marginal decrease and have made areas such as Dubai Marina, Downtown and Palm Jumeirah more affordable than they used to be in the past. Which in turn has given more options to tenants who were limiting their search to specific communities.
From a community point of view, Dubai Marina topped the list in Q4 2016 with 416 sales transactions worth AED 724 million according to the latest Chestertons Dubai and Residential Office Report.
The combination of price drop and increase sales transactions could indicate that more and more tenants have become homeowners and seized in the opportunity that presented itself. The increase in sales volume could also mean that asking price from sellers and offers coming from buyers are becoming more in line.
The report has also shown a shift in the way buyers are acquiring their properties: indeed there has a been a 25% drop in terms of cash transaction in 2016 versus 2015 while the amount of mortgaged properties have gone up which would confirm this new wave of owner-occupied properties.
All those are good signs that the market correction is slowly but surely coming to an end