13 July 2017

Buyers of Dubai residential property are still being misled by “best price” off-plan offers when they should be focusing on the key factors that attract end-users, a UAE real estate expert said.

Firas Al-Msaddi, CEO of fäm Properties, said Dubai is experiencing a growing trend for purchase decisions in prime locations based on what end-users see when they visit ready properties.

“Properties are often advertised as having the ‘best price,’ but this can be very misleading,” said Al-Msaddi. “If you take Downtown Dubai for example, we’ve seen off-plan two-bedroom apartments priced as low as AED1.6m ($435,611) to AED1.8m, with others advertised for between AED2.5m and AED2.8m.

“The reality is that the lower priced properties can turn out to be more expensive when you look at the price per square foot, but inexperienced buyers don’t take this into account. And because they’re buying off plan they may not visualize how small the apartment is until it’s too late.” He added: “It becomes a problem if they decide to resell or rent out the apartment to end-users who want more living space, and find the price per square foot is high compared to other properties on the market.” This, Al-Msaddi said, is particularly the case in prime areas like Downtown Dubai where the vast majority of end-users are Gulf Cooperation Council (GCC) citizens, other Arabs and Indians who demand spacious two, three and four-bedroom homes.

Located at the heart of Downtown Dubai, the 36-story Mada Residences luxury residential tower is singled out by Al-Msaddi as a prime example of desirable and in-demand Dubai residential property “It’s the only new residential development being handed over in Downtown in 2018, has two-bedroom apartments with maids rooms in the area and is within easy walking distance of Dubai Mall and the Dubai Water Canal,” he said.

Al-Msaddi added: “There’s a lesson here for both investors and end-users who need to evaluate a property in the context of expected end-user demand once the project is completed. This can be measured in terms of the property’s liveability offering — the amount of space and comfort — combined with the individuality and unique nature of the development and the overall market supply factor.”

© Arab News 2017