Hear our experts’ take on the latest developments and trending topics
Property Monitor’s Moe Abeidat discusses buying property in Dubai and the factors that influence purchasing decisions.
One thing that stood out, amidst our last sprint to publish Cavendish Maxwell and Property Monitor’s Q3 2018 Residential Market Report for Dubai, is how today’s average prices for a villa/ townhouse and apartment, $517,000 and $327,000 respectively, are approximately the same as in Q1 2008, before the market crash. The difference is, 10 years ago we were in a rapidly accelerating boom, with buyers flipping transfers for quick financial wins.
At the time, not many expected the market to be heading downhill, though some logical minds predicted an impending decline. Today, on the contrary, we all agree that our market is on the low side, and as typical cycles go, we are all certain of it going up, as this relatively young market grows progressively more mature.
To many prospective buyers, this is the perfect time to buy a home. This is likely as affordable as the market could get at this point. We see from our system’s data insights that secondary villa/ townhouse sales have recently outpaced off-plan ones, which makes sense as families are not interested in paying and waiting for a home to be built while also paying rent. Families need their homes now, and therefore are more inclined to buy ready to-move-in properties. At the opposite end of the spectrum, investors (buying low to sell high in the future) are still attracted to the myriad options in off-plan apartments.
From a home ownership standpoint, and for most residents here in Dubai, the term ‘affordable housing’ has a warm sound, as it flares the desire many of us have: to have our own piece of Dubai. Each one of us has our own reasons to love this place and choose to live in it. Some are starting or strengthening their careers here, some are choosing to build their own business, some are well underway in raising a family with children who know Dubai as their home, and some are even hoping to retire here, especially with the new announcement regarding the retiree visa.
At the same time, a closer examination of the economics and dynamics involved in home ownership in Dubai unveils a complex set of factors that come into effect and could render home ownership unattainable for many of us, for years to come. Mortgage entry is still relatively high and, in relationship to home prices, it pushes affordability farther away from families, especially as most families have significantly higher school fee obligations, compared to most mature markets where education is virtually free.
For this category of residents, affordable housing can still be attained by tapping into the large volume of supply driving rental price lower towards affordable rent, allowing them the freedom to choose from the many attractive communities in Dubai to settle in, and further nurture their attachment to this beautiful place.
“We all agree that our market is on the low side, and as typical cycles go, we are all certain of it going up, as this relatively young market grows more mature.”
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Julian Roche
MA (Oxon), MPhil, PhD
Chief Economist
Julian joined Cavendish Maxwell as Chief Economist in January 2019. Coming from an old real estate family in Ireland, his career as an economist began with a first-class honours degree in philosophy, politics and economics at the age of 19, following which Julian was an analyst with the UK Government. He later helped develop and launch the UK’s residential forecasting service with the firms that merged to become Global Insight. Julian subsequently developed derivatives in the City of London and established real estate futures contracts for what is now the International Commodity Exchange. He also ran a property development and management firm, before eventually serving as an international consultant and trainer to governments, central banks and notable firms including AXA, Citibank, DBS, Deloitte and Thomson Reuters.
Julian fills his work-free time with academic pursuits; he holds several postgraduate degrees, including a PhD in International Risk Management Policy, and also the Licensed Conveyancer qualification. Julian has published many business and academic texts and articles, and is also a keen walker – especially fond of the Scottish Highlands.
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Sarah-Jane Carter
BA (Hons) DipM
Head of Marketing
Sarah-Jane joined Cavendish Maxwell in January 2020 as Head of Marketing and is responsible for the development of the marketing strategy and execution across the Middle East region. An energetic and results driven marketer, Sarah-Jane possesses a wealth of multi-channel marketing experience, within both B2B and B2C environments which she has gained over a 25 year career. Prior to joining Cavendish Maxwell, Sarah-Jane held senior marketing positions for major developers in Dubai including Emaar, Dubai Properties and Dubai Sports City. She also worked for IWG as the Regional Marketing Director responsible for the MEA and APAC regions. Before relocating to the UAE in 2005, Sarah-Jane held various management roles in public and private sector companies in the UK including ten years at Royal Mail and seven years at the Bank of America.
Sarah-Jane is a member of the Chartered Institute of Marketing and has a BA(Hons) Degree in Business and Marketing
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