In a market where everyone is looking for a buyer, you have the opportunity to purchase on your terms.
Finding your why
All real estate professionals are familiar with everyone’s interest in where the market is and where it is going. To put it simply, while attending any social event these days, the moment you start chatting with people, they all
have the same question, “Where is the market going? Is there an oversupply? Should I buy?” My answer is: “The market is amazing … that’s because it goes both ways… You have to find out your why before even asking if it’s a good time to buy or not.” Jokes aside, no one can control the market and in order to make the most of it, you must ask yourself some additional/auxiliary questions. Simon Sinek has written a couple of books about finding your why, in a metaphorical sense. I believe that his outlook on the way to your why is a very good way to look at buying a property, regardless of whether it is for investment or that dream family home that you’ve always wanted.
«The buyer these days must understand that it is in a market like this that the best prices can be negotiated and must take full advantage of the position they are in.»
What makes the current market attractive?
Some of the tools that brokers use these days are
so comprehensive. We can generate a full picture of where the market was/is on a yearly basis, going back up to 10 years. If you study one of those reports in terms of pricing, you could easily see that the current market prices are close to the 2010-2011 levels, which is the moment that the market started recovering from the World Financial Crisis. By adding a very conservative inflation rate of 2 percent per year, that will put the prices at even lower levels.
In my 10 years of real estate, I was always surprised by how the majority of buyers would not buy unless everyone is buying, a trend which causes markets to go up very quickly. It seems that the majority of buyers need a positive sentiment in the market to be able to make a decision and although that is a definite catalyst, it shouldn’t be the only one.
The buyer these days must understand that it is in a market like this that the best prices can be negotiated and must take full advantage of the position they are in. We are already noticing shorter days on the market for the well-priced and well-located properties. Bidding wars will soon follow with multiple buyers wanting the exact same property and it won’t be long until the premium locations, projects and units will stop going down in price, and who knows, maybe even start going up.
How can you make the most of it?
This is the easiest part because it involves you, the consumer, or the buyer, hunting for that return on investment or family home. You must look at it from different angles; your current financial position, your future plans and most importantly what is your reason for buying a property. This will take a few hours of your time but it’s worth it. The above is personal information that you might not want to share with everyone, apart from your financial adviser.
Once you understand how much you can spend and what type of property you are after, the house hunting starts –this will be the most enjoyable part of the process. Going back to the initial question on how you can make the most of it, I’m sure you’ll soon notice that the amount of available options is quite overwhelming at the start. However, is it really the case?
Any project has about 10 to 15 percent premium units (units with good layouts and views) that generate a lot of interest with buyers and tenants alike. There is no better time to hunt for those than now. This is how you can make the most of it. The real how is very simple. In a market where everyone is looking for a buyer, you have the opportunity to purchase on your terms. It could be a never-before-seen payment plan or a fabulous price for a sea/park/golf-course view unit that you could only dream about a few years ago. If it makes sense for you to buy, then be bold, negotiate and buy. Don’t be afraid about what your peers will say. We need more trailblazers!
Why now?
This is a question that only you can answer. Real estate professionals are here to guide you and although we don’t have a crystal ball to look into the future, we definitely have more information to validate and help you make a decision than ever before. I must say that although in the past, real estate professionals in Dubai were portrayed in a bad light, today, it is completely
different.
One of the values that we believe in most is transparency and the industry as a whole has progressed to that. We are now more than ever true consultants who look at mortgage interest rates, supply and demand, ROI
opportunities, macro and microeconomic factors, long and medium-term investment strategies and exit plans and we are really proud to be this way. We’re ready to guide you to make your decision. Are you ready to find your why?
ADRIAN POPICA
General Manager, House Hunters Real Estate Brokers
