Dubai Property Market is Softening Says Dubizzle
businessweek | 01-10-2015, 04:57 AM | UAE |
Dubizzle’s latest property trends report shows interest in outlying areas is increasing
Between January and August, search inquiries for property in areas such as Jumeirah Village Circle and Al Furjan jumped over 150 per cent, says Dubizzle’s property product marketing manager.
According to Ann Boothello, areas such as Dubai Marina, Palm Jumeirah and Downtown remain popular, “but people are now beginning to realize there are more options”.
Dubizzle’s trend report shows search inquiries in the eight month period rose by 152 per cent for rentals and over 200 per cent for sales in Jumeirah Village Circle (JVC). In Al Furjan, inquiries into properties for sale rose 200 per cent but those for rentals declined.
Boothello explained the results were due to the rate of infrastructure improvements and community growth in the areas. “JVC ‘s infrastructure has improved, and it has become a self sustaining community so people don’t need to travel out to things such as groceries,” she says. “Al Furjan is still very new so rental inquiries have declined, but property investors are thinking right now is the time to buy at a cheaper price.”
Boothello was careful to not label the decline in inquiries as a fall in property prices, but a levelling off. “Our report shows an increase in rental prices in Bur Dubai and Deira, while New Dubai showed only a slight dip,” she said. “The market is levelling off. Underpriced properties are registering higher rents as property in more popular areas sees a softening of demand.”