As Dubai’s booming luxury property market hits new highs, property experts advise both sellers and buyers to strategically time their moves for maximum gains based on location, condition, and investment goals, as stated by Arabian Business.
As reported by Arabian Business, the Dubai property market has long been driven by strong demand, especially after COVID-19, driving more buyers to the thriving market than ever before. With prices sky-high though, is now the right time for owners to sell their investment?
Economic growth in tourism, trade, and finance increased prosperity, along with tax incentives and foreign ownership laws attracting overseas investment. In addition, government infrastructure spending has further helped put Dubai on the global map, as per Arabian Business.
Selling a Dubai Property in 2024
“According to Ujjwal Goel, Director of Teraciel Group, if you purchased a property during the downturn seen in COVID-19 and flipped it amidst pandemic recovery, your ROI as an investor could have been through the roof. On the flip side, if you had sold a property during COVID-19, one year later you would likely regret having not held on to it a little longer in the name of larger profits,” as noted by Arabian Business. Goel added that there is no one-size-fits-all answer to if it is a good time to be selling property.
Echoing the sentiment, Paul Kelly, Operations Director at Allsopp & Allsopp Group, added that “it depends” on an individual’s next move, as outlined by Arabian Business.
The market is at the highest it’s ever been in Dubai, so the likelihood for most people is that they will already have an amount of ‘profit’ sat in their homes. The key question is what you are going to do once you have sold [property],” he said, as per Arabian Business.
According to him, if the investment goal is capital gains to reallocate funds or seize another opportunity, then selling now could make sense.
While the market may continue rising, perfect timing is impossible, Kelly said, adding that there are also quality development phase investments offering chances to re-deploy proceeds into early phase projects expected to appreciate meaningfully over construction until completion, as reported by Arabian Business.
According to Teraciel Group’s Goel, capital growth rates for luxury properties in Dubai are forecasted to slow significantly this year to 4-5.9 percent, compared to 17.4 percent in 2023, as per Arabian Business. So investors would have been better off selling last year.
While not ideal to sell now, it could be a good time to buy, as Dubai’s real estate market is still expected to outperform globally and grow 8-9.9 percent in 2024, he noted.
“An influx of high-net-worth individuals (HNWIs) is contributing to this belief. If this projection is realized, super-prime real estate – assets valued at $25 million and above – could prove to be a sound investment with handsome returns.
“Beyond profitability, super-prime residential developments are also known to offer end-users the best possible quality in the entirety of a project; from interiors to appliances, and security, as well as so much more. This is why investors are increasingly seeking out these developments, as the quality they offer is synonymous with the luxurious standing of Dubai,” he stated.
When asked which properties are likely to see profits if sold in 2024, Goel said properties “optimally located” have the potential to yield strong returns for investors.
Optimally located properties include those that are within proximity to central landmarks or overlooking scenic views, according to Goel, as stated by Arabian Business.
As highlighted by Arabian Business, for this reason, neighborhoods such as Palm Jumeirah, Downtown Dubai, and Dubai Marina stand out as some of the most sought-after areas for luxury real estate. It’s worth noting that Dubai Hills has also emerged as an area of interest worth considering for investment,” he said, emphasizing that groundbreaking developments like this are “not only playing an integral role in the strength of Dubai’s luxury real estate sector but also future-proofing the residential segment by meeting evolving market demands. Consequently, if an investor opts to flip a project like this one, they will inevitably realize a profitable ROI.
Renovated Dubai Properties Yield More Profits
Allsopp & Allsopp’s Kelly added that people are “taking good profits” out of renovated properties as well as properties that were bought three to four years ago.
“Renovating a property in Dubai takes an incredible amount of time, and money – with quite a few unavoidable headaches along the way,” he said. “There is a large and growing demand for ‘turnkey’ properties, which are properties that people can turn up and move in, without the need to do anything. Anyone that bought three to four years ago will have seen significant appreciation and should be in a favorable financial position on selling.”
Kelly also explained that profits are not “area-dependent” rather more to do with the date of when the property was purchased by the seller, if it has been renovated and the condition of the property, view, plot size, and other similar factors.
However, properties can be harder to sell if they have certain negatives like dark rooms, clutter, unusually customized designs, or if they are in poor condition, as highlighted by Arabian Business.
“Tenanted properties can also be more challenging as the buyer has to take over being a landlord and wait for the tenants to vacate,” Kelly said, as stated by Arabian Business. He added that this is why many landlords are opting to rent their properties as holiday homes instead, as it allows them to sell the property empty if needed.
“The buyer won’t have to deal with tenants. Renting as a holiday home also provides generally higher returns,” he further explained.
“The positive impacts include renovations, upgrades, light, an uncluttered space, nice views, attractive room dimensions, good plot sizes, and regarding the above, properties that are also ready to move into,” he concluded, as per the insights shared by Arabian Business.
Source: https://www.arabianbusiness.com/industries/real-estate/dubai-real-estate-should-i-sell-my-property-in-2024-experts-weigh-in
