Following luxury homes, mid-market properties will have their day in the sun.
Mid-market property prices began to pick up as the year progressed, albeit from a much lower base level with moderate upticks, signaling an increase in confidence.
Last year's price cycle was nearly identical to what occurred during the first boom cycle of 2011–12. Last year, the main drivers of new sales were luxury, mid-market, and payment plans. The trend is expected to continue this year as rising interest rates act as headwinds.
Unlock the potential of stalled projects
Through a process of gentrification, revival, and re-zoning, each price cycle has resulted in the birth of new communities that benefit tens of thousands of investors and end-users. The story becomes a cliché as it is told, again and again, a dead metaphor that has lost its figurative power.
The proclivity to invest again becomes the most difficult obstacle for investors caught in a cycle of stalled or delayed projects. In developed communities such as Dubai Marina and Jumeirah Village, the value of discovery has resurfaced. This is especially noticeable in newer communities such as Business Bay and parts of Dubailand.
Everything is still on the table
Even though brokerages provide "swap mechanisms" (which are essentially simple mechanisms for baking higher prices into newer projects), the ultimate goal remains the disentanglement and unlocking of values. There is no doubt that these projects are an unintended consequence of rapid urbanization.
Although the white-hot pace of 2021 is unlikely to be repeated, there will be a renewed emphasis on mid-market housing, attracting first-time buyers and enticing existing owners to move up the ladder. There will also be a laser-like focus on investors who did not fully participate in the previous years' upside.
Source: Gulf News