Sellers raise the price of their properties-Dubai Real Estate

Sellers raise the price of their properties

Owners are still holding on to their property anticipation of market recovery

In recent months, we have seen many indicators reflecting a better level of confidence in the UAE real estate market. Since August 2011, more transactions have been recorded and banks are offering better mortgage rates to potential buyers.

What effect does all this positive news have? Only a small number of individual freehold property owners have started to raise the asking sales price of their property. Certain master developments witness higher demands than others because they offer premium units which enjoy better views and higher quality finishes.

In the boom years,owners of these properties would have been able to sell their units for higher prices.But since the financial crisis, they have been holding on to their properties in anticipation of market recovery. This is now beginning to happen. The rates of transaction are improving and sellers can now expect to achieve a higher price than would have been attainable in Q2 2012. Many sellers hold off putting their properties on the market for a few more months in the hope that selling prices will rise further.

This creates a gap on the market as buyers start to come forward with ‘’reasonable’’ offers which fail to meet seller expectations most of the time. It is suggested that people looking to sell their property seek advice from a professional property management agency to make sure they are receiving the right kind of offers.

Sales prices are reflective of the available market inventory,and now,each established location or development has positioned itself at a certain level. However, sellers need to be mindful of the fact that buyers are obviously looking to pay a price that allows for capital appreciation in the mid to long-term.

Improved market conditions should translate into an increase in transactions,which will boost sale prices. Sellers must carry out due diligence as there are multiple factors in play, and the absence of due diligence can potentially force a decline in transaction levels.

Dubai Real Estate Tips.

Property sellers are advised to continue carrying out due diligence

Owners must seek professional advice to ensure they sell at the right price

Buyers are also looking to pay price that allows for capital appreciation