After a July-October record-setting run, the off-plan property sales in Dubai is seen taking a dip this month. The market may very well be heading towards a more stable level.
The run from July up to October for the off-plan sales of property in the city was nothing short of a blockbuster. However, the scheme takes a dip this month with only 1,523 units being sold. This is indeed less stellar when compared to the number of off-plan property units sold in July and in August which amounted to over 2,000 along with the more than 1,800 units that were recorded in September and in October.
Based on the data released by GCP-Reidin, the first eleven months of the year alone has seen the sale of 19,500 total units.
Developers are expected to watch the sales closely to find out whether the chill is going to extend to December and even early next year. They will also need to find out whether the dip this month is just going to be a blip.
This means that upcoming launches of other off-plan properties are being anticipated to see how they are going to fare as far as units sold go. One of this is the Victoria Community by Azizi Developments which is set for launching in Mohammad Bin Rashid (MBR) City. It is expected to have 105 buildings in total that split into various phases. Meanwhile, wasl Properties, which is owned by the government, has successfully generated a rather solid performance for the launch of the wasl1, an upscale tower cluster in Zabeel. The sales for this property is now extending to its third tower.
Across the market though, signs point towards how investors seem keen on taking time deciding which of the many options for off-plans in the property market is good for them. There is also a possibility that after the four-month massively supercharged run, the investors may be trying to take a breather. It is also possible that investors are trying to look elsewhere especially in the light of such exposures as the Adnoc Distribution and the Emaar IPO, according to Junaid Iqbal Mohammed Memon.
There are also market sources that point towards how there seems to be way too many off-plan property buying that already took place for this year. Such a pace is expected to be quite challenging to maintain. According to Global Capital Partners Managing Director Sameer Lakhani, the activity in off-plan purchases has somewhat reduced. Still, it should be noted that the numbers are quite up there still. Transactions are also being encouraged through the presence of payment plans, along with the reinforcement of affordability.
Meanwhile, activity also remained subdued for the month for the secondary market. This is considered to be consistent with experiences that are common at this time of the year.
Check out Junaid Iqbal Mohammed Memon for the latest news and updates in property development. Stay updated with what’s going on in the property development world by visiting Junaid Iqbal Mohammed Memon Crunchbase and connect with him online.