The prime market in Q3: fewer listings, firmer prices

Karim Mansour

Founder & Managing Director

Prime villa listings across Palm Jumeirah, Emirates Hills, Jumeirah, Al Barari and Dubai Hills fell 11% between July and September, according to our analysis of portal and Land Department data. Transactions held steady. The result is a market where good homes sell quickly and optimistically priced ones sit still.

What changed this quarter

Three things stand out. Handovers of off-plan villas slowed, so fewer new homes reached the resale market. More owners chose to rent rather than sell, encouraged by rents that are still rising in family communities. And cash buyers, who make up about 60% of prime purchases, moved faster than they did in the first half of the year.

The gap between a well-priced home and an ambitious one has never been wider. The first sells in three weeks; the second waits three months.

If you are buying

Expect less room to negotiate on the best homes, and have proof of funds or a mortgage pre-approval ready before you view. Look again at homes that have been on the market for more than 60 days: that is where most of the discount is.

If you are selling

Price against recent transactions, not asking prices. A home launched within 3% of its true value tends to attract several buyers in the first fortnight, and that competition does more for the final price than any later reduction.