Property owners and investors in Dubai are increasingly opting for flipping by remodelling their properties and selling at higher rates to cash in on prices reaching an all-time high in the emirate.
“Investors and homeowners with properties in prime and in-demand locations are electing to carry out extensive redesigning and remodelling work on properties before placing them back onto the market at a premium sales and rental price,” said Paul Kelly, operations director at Allsopp & Allsopp.
According to the latest figures released by Property Monitor, prices in Dubai rose to a record high of Dh1,271 per square foot, surpassing the previous all-time high of September 2014.
As a result, the gap between average seller sales listing prices and transferred property sales prices in the current market has reached 15 per cent.
“With demand for Dubai real estate at an all-time high, sellers frequently place a premium on sales listing prices,” he said.
Richard Waind, CEO of Betterhomes, said 2024 might see more available properties, as sellers look to take advantage of current prices.
“Developers will also continue to launch new projects at an accelerated rate. This extra supply is mostly likely to keep the price rise we have seen over the last few years in check. For renters, there may be some relief towards the latter part of 2024, with the delivery of more new homes taking some pressure off the current rental market,” said Waind.
The high prices in popular and central locations have resulted in migration to new and upcoming areas, which are still more affordable.
“Homeowners looking for greater value and space are moving from central and prime locations towards the up-and-coming Dubai suburbs and ‘new’ master residential communities such as Jumeirah Village Circle (JVC), Dubai South, Townsquare, Reem, and Arjan. These places are still affordable as compared to central and prime locations,” Kelly added.