Homeowners in Dubai are being forced to reduce their asking prices as the property market stagnates, creating a wealth of cheap investment opportunities , according to reports in Dubai.
The reductions are being made in response to a fall in the number of buyers, with many adopting a wait and see approach until the outlook for both the property market and the wider economy become more clear.
Many investors who acquired homes a few years ago when property sale values were at their peak, but want to sell now, are finding themselves in a precarious situation, mainly because asking prices for resale properties have become somewhat out of kilter with what buyers are prepared to pay.
This is partly because the market is seeing a flood of off-plan launches, with the bulk of these priced at or lower than the values in the secondary market.
“For every individual investor trying to offload a property, there is a master-developer with a highly attractive competitive price offer targeting the same buyer,” an industry source told Guld News Property this week. “In these circumstances, the master-developer gets to win all the time.
“Only existing trophy properties are still able to command a premium when being sold in the secondary market - nothing else.”
While many sellers struggle to sell at a decent enough exit price - the window of opportunity to secure a bargain property investment is increasing.