Many buyer enquiries are coming for new communities and buildings
FINTAN FLANNELLY,
Sales & Off Plan Manager, Exclusive Links Real Estate Brokers
3rd PLACE BEST AGENT 2019
Dubai real estate is consistently a topic of conversation among friends, families and colleagues. I believe there is an appetite for tenants to make the shift to owning their home but they are unsure of when is the right time to take the plunge. Today’s market offers great value and while this is difficult to swallow for sellers, it presents a great opportunity for buyers. I don’t believe customers realise the full range of options in the market. I have clients buy on payment plans that have allowed them to buy a townhouse rather than an apartment. I have had clients buy in more central locations they thought they couldn’t afford. This is the message that needs to be relayed.
2019 saw the Dubai Land Department report an 11-year high in transactions with 41,988 units transacted, which represented a 20 percent growth year on year (source: Data Finder). While 56.3 percent of these transactions came from the off-plan market, there was renewed confidence in the secondary market which is indicative of the realisation that there has never been as good a time to invest or buy a home in Dubai.
While we are only a few weeks into 2020, this is a trend that looks set to continue. Business has been brisk in the opening weeks of the year with an increase in the volume of rental transactions and steady increase in buyer enquiries. Many of these enquiries are coming for new communities and buildings that have been recently handed over and newly available.
We are also experiencing a significant movement of young couples and families from the apartment market into the townhouse/villa segment. Popular townhouse communities that represent good value for money are found in Dubai Hills Estate and further along Al Qudra Road in Damac Hills, Arabella, Town Square, Mira Oasis and Serena off Emirates Road. These communities are resulting in a shift from some of the more traditional locations and moving out into the heart of Dubailand where they have a choice of new homes with better amenities, space for a family to grow and enjoy a better quality of life.
The increase of supply in the market is a result of the off-plan boom in 2016 and 2017 and set to continue throughout 2020 and into 2021. While these communities offer great opportunities for some, it also presents challenges for owners who bought off-plan and have seen prices fall since they purchased. Handovers are on the increase and with that, there has been a downward pressure on prices.
One concern of particular note is there is a rise in the inability of some owners to make their final payment to developers. This can be a result of a change in the owner’s circumstances and/or a dependency on bank finance to make the final payment based on the original price. There have been many cases where independent bank valuations report a value considerably less than the original purchase price. Until now, there has not been a solution, however, in recent weeks, Mortgage Finder released a product that specifically caters for such cases, which is welcome.
Today’s successful agent is one who is prepared to work twice as hard for their clients than ever before, whether they are acting for a buyer, seller, tenant or landlord. This is undoubtedly a challenging market and there is stiff competition across the board. However, it is also a market full of opportunity and I believe the successful agent today is the one who has a positive outlook and mindset. Clients today don’t want a broker who churns out doom and gloom, they want a knowledgeable agent, an agent who listens to them, an agent who understands them, an agent who provides solutions and most importantly an honest agent who will give them the best advice and who can deliver on their promise.
I was delighted to have been shortlisted in the prestigious category of Property Finder Agent of the Year along with some of the best in the business. To have received third place was a fantastic recognition of the work I have done since I arrived in Dubai with my wife and daughter in 2015. When asked how I differentiate myself from others, the answer will sound like a cliché. I am genuine, know what I stand for and value my relationship with my clients more than any transaction.
Real estate is my chosen profession, albeit I took an indirect route having completed an Accounting and Finance Degree with a view to being an accountant! For me, this is not a job, I genuinely enjoy what I do and look forward to each day. I think long term and always put my client’s needs above my own. My relationship with my clients last long after the deal is done, in fact this is only the starting point.
I am proud to say that I have clients who bought off-plan with me in 2016 who have stayed loyal to me to the point of renting or reselling their property and investing further. I provide a complete property life-cycle service that many agents neglect and therefore are always chasing new business. I have managed to build my reputation on repeat and referral business and as we prepare for the
next wave of millennial buyers, I have worked to grow my personal brand on various social media platforms.
While the Property Finder Award doesn’t put money in the bank or give rise to complacency, this recognition from Dubai’s leading property portal further motivates me to raise my game to another level. The award sits proudly on my home office desk. 2020 – the best is yet to come!
Business has been brisk in the opening weeks of the year with an increase in the volume of rental transactions and steady increase in buyer enquiries.
Trends for 2020
• A migration by apartment residents to new townhouse communities which offer value for money and space for growing families.
• A shift from older tired apartment buildings to new buildings with higher quality and contemporary finishes.
• Steady demand for older properties in prime established communities which offer good value and/or good transport links (Arabian Ranches, Victory Heights, Springs, Jumeirah Lakes Towers and Dubai Marina).
• Older/poorly maintained buildings will experience an increase in periods of vacancy as people shift to new properties. This will result in rents/prices falling and as a result the demographic in the building will change.
• Private developers will now offer ready properties that they didn’t sell off-plan, giving buyers peace of mind insofar as they can inspect before buying and suitable for finance buyers.
• Smaller developers will offer longer post handover payment plans as they compete with big developers in the primary market.
• More landlords will explore the option of short-term letting/Airbnb especially as we get closer to Expo 2020.
• Landlords reinvesting in their properties to reduce periods of vacancy / increase their salability – upgrades to bathrooms and kitchens will be big business in 2020!
