Sales price ranges have remained relatively stable for apartments, villas and commercial property in Dubai, but potential buyers are more informed and looking for better value, according to a new report by Landmark Advisory.

“Potential buyers are focused on views, location, quality and finishing,” explained Jesse Downs, director of Research and  Advisory Services, Landmark Advisory.

“Investors and end-users are increasingly considering the opportunity cost associated with a particular investment; in other words, carefully weighing the merits of selecting a particular unit or development over another. Generally, affordability and lifestyle will be the significant determinants of Dubai residential sales demand and will shape future price stabilisation and recovery.”

According to the Dubai Sales guide for April, sale prices have remained relatively stable amid increasing supply due to inventory trends. “This is a critical point. While the aggregate number of completed units in Dubai increased, the actual inventory, or units available for sale or lease, has decreased over the past year,” continued Downs.

Despite stable sales price ranges for apartments, lower limits are starting to decrease in certain areas like The Greens, Jumeirah Village and JLT. “While product quality is relatively homogenous in many master developments, areas such as Dubai Marina and JLT have a more diverse selection, which makes sale prices prone to greater volatility in the current value-driven market. Demand for apartments is concentrated on the coastal districts, which are defined as those communities directly adjoining Sheikh Zayed Road,” explained Downs.

Although villa price remained relatively stable, the price ranges are starting to compress with locations like The Meadows and The Lakes experiencing slight upper limit declines.

“Demand for villas is dispersed across multiple areas,” explained Downs. “Buyers are weighing their options of whether to buy inland villas or coastal villas based on affordability, quality and overall value.”

Landmark Advisory uses the term “coastal” to describe properties in proximity to the coast, not just those communities directly on the shoreline. Coastal villas are in areas like Jumeirah Islands, The Springs, The Meadows, Emirates Hills and Palm Jumeirah whereas inland communities include areas like Arabian Ranches, Jumeirah Village and Victory Heights. The Dubai Sales guide identified that the most popular inland villas are in Victory Heights and Jumeirah Village Triangle, while the most popular coastal villas are in Emirates Living, which includes The Meadows, Emirates Hills and The Springs.

Regarding commercial properties, sale price ranges have remained stable but actual transactions are suffering. Despite increasing inquiries from investors and corporates, actual transactions are low due to widely divergent price expectations from buyers and sellers.

“Enquiries have increased from corporates, which can give the appearance of increased demand. However, actual demand is still low and not evenly dispersed. The primary demand drivers now are unit size and location. Current corporate demand is primarily concentrated on smaller spaces in JLT and DIFC,” explained Downs.

“There is a clear expectation disparity between buyers and sellers within both the residential and commercial sectors. While the majority of price ranges seem stable, transaction volumes will remain limited at current pricing. Although inventory trends explain the recent price trends, the long term market fundamentals do not support permanent stabilisation for the vast majority of assets in Dubai. In order to stimulate transactions, prices must decline,” concluded Downs.-TradeArabia News Service