As per analyst investors opting for a quick exit cannot reflect the real market conditions.
According to analyst and brokers: Due to certain market changes happening buyers decided to quickly exit themselves despite of the positive market conditions. These cases are not only for the new or the off plan properties but even the well establishes communities such as greens, meadows and springs experience the same fate.
Nothing is more damaging to the prosperity of a property market than to witness an unexpected rush of distressed transactions occurring in a short period of time. They do have a tendency to weigh intensely on purchaser/sellers sentiments. In the purchasers’ case, it could put questions on whether he ought to go in now or hold up more for a “superior” deal to deliver it later.
These instances of quick exit are basically isolated instances and not a general trend followed. The quick exit is happening from the investor’s side rather than the end users. The distressed sales are caused by investors and also wanting a quick exit and not from end users. However these changes has not lead the change of the properties overall asking price. Around a 5 to 7 percent of fall in the asking prices does not define the property market trend. These type of sell-offs are isolated instances and does redirect on the broader sentiments in the market, which are currently positive.
As per other sources distressed sale happen regardless of how the market situation is, weather positive or negative. It is fetched on by the financial conditions of the property’s owner which will make him want to take an exit in the least time possible.
The property values in Dubai are not anywhere close to the negative equity mark, that is when a property price fall for what it was actually bought for, this is not how the market is currently, it is thriving and moving persistently.
According to sources it is lately that after around six months of slow sales that we have begun to experience decrease in prices.
The fall in price is occurring around the market even for the well establishes communities as mentioned earlier.
The reason behind frequent low transaction volume was because of sellers not agreeing on lower the prices in many instances.
The overall transaction dealing occurring in Dubai has considerable come down since the second half of last year. However the developer are keenly undertaking procedures to have a steady pace of off-plan launches trying to pull in any kind of investor interest that is present out there.
This could make for a fascinating period for a prospective purchaser. Should he choose an off-deal and which could be delivered in a few years, or would it be a good idea for him to redirect his interest on a readily constructed project? On the other hand will developer begin offering more positive pricing options?
Things have begun to favour the purchaser in Dubai’s property market. It is currently up to him to choose what he needs to do with it.
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