On Thursday, 8th August 2024, our esteemed Associate Directors, Matthew Montgomery and Alan Cuddihy joined the Dubai Eye Team on the Business Breakfast show to share their expert insights on Dubai’s ever-evolving real estate market. The discussion covered a wide range of topics, offering listeners a deep dive into current market trends, Artificial Intelligence (AI) in Dubai real estate, buyer behaviour, and financing options.
Market Sweet Spot: Properties Between AED 2 Million and AED 10 Million
One of the key takeaways from the discussion was Matthew’s observation on the current “sweet spot” for property transactions. He noted, “We find the sweet spot that seems to be transacting the most is between 2 million and 10 million dirhams.” This price range appears to be where the majority of the market activity is concentrated, indicating strong demand for properties in this bracket.
End-Users vs. Investors: Who’s Leading the Market?
Monty also shed light on the types of buyers currently active in the Dubai real estate market. Interestingly, end-users continue to dominate, accounting for 56% of transactions, compared to investors (44%). This trend suggests that more people are purchasing properties to live in rather than for investment purposes, reflecting a growing confidence in Dubai as a place to call home.
Financing Trends: Competitive Interest Rates Driving Purchases
Another important topic discussed was the role of financing in today’s market. An impressive 72% of buyers are opting to purchase properties with the help of finance. Matthew highlighted that despite global economic challenges, interest rates in Dubai remain competitive. For those looking to lock in their rates, a 2-year fixed rate is available at 3.94%, while a 5-year fixed rate stands at 3.99% for those with a salary transfer. These attractive rates are undoubtedly contributing to the steady flow of transactions in the market.
With competitive financing options and a clear sweet spot in property prices, the market continues to offer ample opportunities for both end-users and investors. Whether you’re looking to buy, sell, or invest, staying informed on these trends is key to making the most of Dubai’s thriving real estate landscape.
Tune in to the Dubai Eye every Thursday at 8:30 am to get the inside scoop on all things Dubai real estate with Espace Real Estate
Keep up to date with current Dubai real estate trends and view our H1 Market Insight report here
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