A key feature of the Dubai real estate market in 2017 was the increased demand for construction projects with almost unchanged demand for finished objects.
For a number of buyers, the acquisition of real estate at the construction stage turned out to be a tempting opportunity to move to more accessible areas with infrastructure no worse than in the center. In addition, it is expected that the cost of real estate in Dubai on average will grow with the approach of Expo, which is already happening in a number of areas.
The largest sales of off-plan real estate were registered near the districts of Dubai South and Jumeirah Village Circle. Over the past year, in each of them, more than 2,000 unfinished construction projects were purchased.
In the rapidly developing area of Dubai South, where the Expo 2020 venue is currently being built, 2,095 properties were sold. In the area Jumeirah Village Circle, where The First Group is building one of its hotels called The One at JVC, 2161 deals were made.
At the third place in the number of objects sold at the construction stage was a more expensive area of Downtown. Here 2,039 transactions were recorded. Such data leads the analytical company GCP-Reidin.
2017 was marked by a significant increase in the gap between the volume of sales in the secondary market for finished housing and construction projects. According to GCP-Reidin, in 2017, 11,536 finished objects and 21,884 under construction objects were sold. In many respects this trend is facilitated by convenient payment plans offered by developers in Dubai.
In the IV quarter of 2017, this trend has declined, but it is possible that in the new year, the acquisition of real estate under construction will again become very popular. However, for unambiguous forecasts it is too early. Many developers are in no hurry to make decisions, because the behavior of buyers can change greatly due to the introduction of VAT in the UAE. Despite the fact that residential real estate in the Emirates is not subject to VAT, buyers are always cautious when it comes to taxes.
On the other hand, since the VAT applies to commercial properties, in late 2017 there was an increased interest in office real estate, which was mainly due to the unwillingness of customers to overpay an extra 5% in the new year.