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19 March 2024

Decoding market value: How to find perfect home

UAE residents must look into various property portals to get an accurate average price of the property they are looking for. (Ashok Verma)

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By Staff

Buying a property in Dubai is tough, buying a dream house is tougher - if you don't have the right acumen about the market.

The Dubai real estate market is thriving, with the emirate registering Dh68 billion worth of deals in the first 53 days of 2016.

Property developers have been launching projects since beginning of the year, offering schemes such as waiver of registration fees to post-completion payment plans.

But what should the investors keep in mind before investing their money into real estate?

With hundreds of units available are you buying the right property? Are you paying the right amount for the unit?

EZHeight.com, Dubai-based e-commerce website, has provided some great insights in decoding the market value of your dream home.
 
Adham Saleh, the CEO of EZHeights listed out a cheat sheet on how value of a given market value of a property is determined.
 
Given a big chunk of your annual income goes into the rent cheque or mortgage payment, the expatriate community in Dubai needs to keep the several points in mind before investing into property. Ever wondered if you’re paying the right price for a given property?
 
Do not be carried away with the Olympic-sized swimming pool, or the gold chandelier in the building lobby. they do not decide the market value of your building, or area. EZHeights' Adham Saleh explains that finding a comfortable, affordable housing option in Dubai can be an exciting, yet daunting task.
 
Also people determine an approximate market value of a property in a given area, solely from the information passed on to them from real estate brokers or other residents in the neighborhood.
 
Saleh recommends that UAE residents must look into various property portals to get an accurate average price of the property they are looking for.

Do a screening from accurate average prices per area and per size of the property, this will help you to brush aside false information.
 
Saleh explains that the main factors that go into determining the market value - "Supply and demand of a property would include factors such as - location, access to metro, public transport, and customer perception of an area."
 
He added that areas with 1-2 bedroom properties are far more popular than areas with 3-4 bedrooms. "One of the reasons why Dubai Marina is so popular is because a majority of the apartments are 1-2 bedrooms. If there were more 3-4 bedroom apartments, the department will be much lower," said Saleh.
 
According to Saleh, economic growth and unemployment also affects prices.

"Less employment and good economic growth will encourage buying which will increase prices and vice versa."

Location of the property, cost of construction (prices of cement, steel, etc.) will affect the price of the property.
 
Close proximity to public transport- like metro, bus stands; water taxis etc. definitely increase the prices.

According to Cluttons' industry trends, the property costs in Dubai Marina have increased by 28 per cent since 2010, due to its connectivity to the Dubai Metro and Dubai Tram, and its proximity to various retail offerings.
 
Also, the Roads and Transport Authority (RTA) has claimed that the value of properties situated within 1.5 kilometres of metro stations has risen to 41 per cent to 13 per cent.

"Not only does close proximity to public transport affects price but also schools and supermarkets help with that,” he added.