A new reality dawns on the Dubai skyline

Synopsis
Dubai’s real estate sector is currently navigating through turbulent waters due to geopolitical upheavals. Interest from entry-level buyers has sharply fallen, resulting in slower sales across the board and lengthening timelines for buyers to secure agreements. In an effort to attract new buyers, developers are rolling out appealing incentives, including flexible financing arrangements and waiving certain fees.

BENGALURU/NEW DELHI: Dubai’s property market is navigating geopolitical headwinds, with the Iran war prompting a 40% reduction in entry-level activity over the past year, brokers said. Off-plan properties are taking longer to sell, and deal closures are stretching well beyond typical timelines, they said.

On-table price negotiations of 10–15% have become commonplace even in the off-plan segment, with the AED 1 million to AED 2.5 million price band bearing the brunt. The entry-level sweet spot that once moved fastest is now seeing the sharpest discounting. The secondary market has not been spared either, with buyers extracting deeper concessions before committing.

Adding to the apparent decline, brokers say March’s strong registration numbers were inflated by a backlog of deals from December through February, masking underlying weakness in current demand.

Actual sales in March were down as much as 50%. Brokers also point to Ramadan as a seasonally soft period, and are looking to April as a potential inflection point, expecting a meaningful pickup in sales activity once the holy month concludes — provided the situation on the warfront remains stable.

Source Economic Times Read more at: https://economictimes.indiatimes.com/nri/invest/a-new-reality-dawns-on-the-dubai-skyline/articleshow/130012991.cms?from=mdr&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst