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It’s time to buy property in Dubai as prices of apartments drop

Dubai: Did you know that if you buy a one-bedroom apartment in Dubai today, you would spend nearly Dh400,000 less than you would about six or seven years ago? Analysts said that if you’re planning to buy an apartment or villa, Dubai’s relatively low property prices, coupled with a slight decline in home loan rates, make 2015 one of the best times in years to invest in real estate.

 

Model of a house in Maccido Royal Estate, Abuja

Prices of apartments in Dubai now cost more than 20 per cent less than in 2008, and there is a likelihood that prices will further slow down or stabilise in the next few months, as more projects are expected to be completed before the end of the year.

“Prices are good and buyers have negotiating room as the market is slow,” said Ryan Mahoney, CEO of Better Homes Real Estate. “Sellers that were asking exorbitant prices in (the first quarter of 2014 )are now asking a far lesser price.”

Along with rents, sales prices for apartments, villas and offices in Dubai either increased or declined marginally, depending on their locations, between 2013 and 2014, but since 2008, overall prices have actually posted a significant decline. “On average, apartment sales prices [for the last quarter of] 2014 were 22 per cent lower than in [the same period in] 2008, but still 6 per cent higher than Q4 2013, despite having declined in the second half of 2014,” said John Stevens, managing director at Asteco.

According to Asteco’s price list, today’s buyer in International City would spend more than Dh200,000 less on a 789-square-foot flat, now costing an average of Dh560,190, down from Dh828,450 in 2008. Property ads are even offering much lower prices, with one-bedroom flats in the same location costing between Dh455,000 and Dh460,000.

A one-bedroom apartment near Burj Khalifa, one of the most sought after locations in Dubai, has lost more sales value, from an average of Dh2,700 per square foot in 2008 to Dh2,325 per square foot in 2014. This roughly translates into more than Dh300,000 decline in price for


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