Last year’s third quarter experienced off-plan residential sales transactions as per reported by ValuStrat. Downtown Dubai (88%), Dubai Silicon Oasis (82%), Jemeirah Village (78%) and Business Bay (83%) were the major locations associated with these off-plan residential sales transactions. According to managing director and group head real estate, ValuStrat.
“Buyers have been attracted away from older, second-hand properties with modern specification, lower price points, attractive payment plans and hoped-for appreciation during the pre-handover build period. This trend is now evident in transaction statistics and is impacting some parts of the secondary market.”
Off-plan value transaction experienced increment by 118% or Dh4.04 billion. Downtown owns half of this value as reported by Chestertons Mena. It also reported that off plan transactions had increased by 86 percent in the third quarter as compared to that of second quarter. South Dubai is the major area where these transactions took place (1,151 transactions). It followed by Downtown Dubai and Business Bay with 821 transactions and 686 transactions respectively. Report also claimed that the added interest rate has impacted negatively upon the completed units which eventually resulted in 11% and 19% in terms of transactions and value.
Ivana Gazivoda Vucinic, head of advisory and research at Chestertons Mena, says that there is slight pickup expected in terms of unit transactions in the next quarter and that’s why, off-plan sales transactions will experience a negative impact. However, experts are expecting off-plan sales transactions to went down in the next few months and eventually stabilize.
29 off-plan projects were added into the residential pipelines in 3rd quarter which means that more than 21,000 units were added. Important projects in this quarter includes Dubai Properties’ Marasi Riverside in Business Bay, wasl’s Park Gate Residences in Zabeel, Azizi Riviera in Meydan and Park Lane Residence in Dubai South.
How to Act Smart as a Seller When the Market is Down?
- Know ins and outs of the Market. Always what’s going with the real estate economy and what’s expected in near future. It will take only an hour every week to surf the internet to get to know about real estate portals and real estate price trends in the market. This data will let you know demand and supply curves in the market associated with price variations, thus allowing you to set your sales strategy accordingly.
- Act Like a Buyer. You should know who your target audience is, who are your ideal buyers and whether they are investors or end users. It will help you to define your sales strategy in accordance with the type of buyers you have. As you live in the neighborhood or have property in a given neighborhood, you would know what can appeal to the buyers. For instance, you would know that whether curb appeal would be better for your buyers or something else in a property.
- Set Your Price Smartly. Always set your price in accordance with the market prices. Never too low or too high. You can always consult a listing agent for this purpose.
- Pick the Right Broker. If you don’t have real estate knowledge, it would be better for you to pick a listing agent/broker who does not only know about the given neighborhood but have plenty of experience in selling and maintaining properties and does business in accordance with the official rules and regulations. If you go exclusive with your agent, it will be easier for screening buyers, strategizing for property sales, negotiation and eventually leading to successful property closure.
- Property Staging. You can carry out necessary renovation to attract more potential buyers to your property.