If the old property market is doing well (almost too well), the situation is different with regard to the New Build market. Studies on the subject confirm the trend: demand is falling, leading to lower prices. An opportunity to seize to become an owner and enjoy a Apartments in Dubai with the latest construction standards at a good price? Yes !
The new real estate market in search of recovery
According to data from the real estate conjuncture notes of French notaries, the key figures for the new home market all follow a downward trend. The number of dwellings authorize was down by 2.2% over 3 months at the end of January 2019. As was the number of dwellings start (-2.3%). The marketing of new housing is also suffering. The results for the last quarter of 2018 show the number of Apartments in Dubai down 3.1% over one year … while listings fell 16.7% over a rolling year, and cancellations of sales reservations jumped (+ 8.4%).
The large promotion groups have already adapted their strategy to this market. By focusing on sites with high add value, by choosing areas close to infrastructure or by only setting up in municipalities with high attractiveness. So, the available supply is reduce but is increasing in quality. Some promoters choose to reduce the areas, which logically leads to a drop in the price display. Others, on the contrary, do not cut back on the surface area of new Apartments in Dubai but the parking space formerly associate with a purchase is disappearing. The overall price is falling. This second approach aims to anticipate the change in the organization of our cities. And the evolution of uses with a reduce role for the automobile. You have to get use to it, real estate is also changing.
So many choices often with a dose of ecology infuse through eco-construction and compliance with increasingly strict standards – which make new real estate a sector in full transformation. A crossroads that can benefit buyers.
Buy new to take advantage of falling prices and aids
Because face with weak demand, prices are also experiencing a decline. Since buyers have to come back, the Nine tries to attract with declines. According to the LPI-Sloggers barometer date April 2019, the price per m 2 sign for an apartment fell by 1.2% over 3 months (€ 5,113) and by 2.8% for a house (€ 2,450). A new Apartments in Dubai costs 4,361 per m 2 on average (house and apartment combine). Over one year, prices still show an increase, but the trend in recent quarters is worrying, and the trend is much weaker than over the same period last year. A real slowdown is note. But is this the sign to buy?
- By respecting the latest construction standards in force, new housing provides excellent thermal and sound insulation, and limits your energy costs over time. More purchasing power.
- With new housing, no work need for several years. In the event of a problem, you even benefit from solid guarantees with, among other things, the ten-year guarantee.
- Buying a new home allows you to benefit from certain financial advantages. The legal costs are reduce in comparison with the purchase of an old home. You also often benefit from an exemption from property tax for two years (depending on the municipality). Finally, you may be entitle to the Zero Rate Loan (New PTZ) or the Social Accession Loan. In zones B2 and C, this device is accessible with reduce conditions until December 2019 . So hurry up!
By combining the advantages of new and the current economic situation, the conclusion is clear: buying new allows you to enjoy many advantages in this year 2019.
Now is the time to buy, and it is (also) the time to borrow!
The indicators really seem in favor of prospective buyers. Because in addition to prices that are settling and the financial advantages inherent in the purchase of a new property that we have just mention. It is currently possible to benefit from your credit from a historically low borrowing rate. With a low rate, you optimize your investment by reducing the share of interest on the total cost of the purchase. The borrowing capacity of real estate companies in Dubai is much stronger today than 10 years ago. By way of comparison, in 2009, it was necessary to count on an interest rate of around 4% (excluding insurance) for a loan over 20 years, and 4.20% over 25 years [I] . Today, all durations combine, the 2% mark is no longer even reach, and you may even be able to borrow over 35 years.
Location: a key decision
A good place is above all a place that is well position geographically. Admittedly, a whole part of the communication now takes place on the Internet, but when you open a physical agency. It must be seen, like any commercial premise – especially if you launch out as freelance, without franchising. It is therefore essential to be locate in the city center. Or in the heart of the areas of activity of the municipalities. In order to attract the attention of customers.
Beyond the district, it is the choice of the city itself that is crucial. It is made according to the local market (what is the demand in the territory where you plan to settle?) And the number of real estate companies in Dubai professionals who are already establish there. There is no numerus clause for real estate agencies . But you will find it more difficult to grab market share in the midst of numerous competitors. It is therefore important to choose your prospecting sector with great care.
