Credit By: M&M Real Estate
According to industry executives, the Dubai property market is poised for stability in 2024, with average property prices expected to remain steady or experience modest growth. After three years of a robust rally, the market shows signs of stabilization, and prices have decelerated over the past few quarters. While a significant price surge is not anticipated, the luxury segment is projected to see decent growth, albeit slower than the previous year. The demand from high-net-worth individuals and a supply shortage are cited as factors supporting growth in the luxury property segment.
Transaction Growth and Market Digestion
Michael Lahyani, founder of Property Finder, expressed optimism about stable prices to allow the market to digest the appreciation witnessed in recent years. He anticipates transaction growth between 15% and 20% slower than the previous year. The emphasis is on avoiding inflationary pressures and ensuring a steady market. However, The luxury segment is expected to see a moderate price increase in the double-digit range.
Volatility in Location-Based Prices
Ari Kesisoglu, President of Property Finder, highlighted the volatility in location-based prices. He explained that specific locations with limited supply and high demand could experience substantial price increases. While average prices may not change significantly, variations are expected based on specific locations. Transaction volumes will remain steady over the next 3-to 4 months.
Strategic Merger in Turkey
In a strategic move, Property Finder announced the merger of its Turkish subsidiary, Zingat, with Hepsiemlak, a company under Doğan Holding in Turkey. Property Finder will become a minority stakeholder with a 20% stake in Hepsiemlak while providing advisory services. The move aligns with Property Finder’s vision of expanding market share in the MENAT region and capitalizing on the growth potential in the Turkish market.
The merger underscores confidence in the Turkish market’s long-term potential and positions Property Finder as a key player in the region. The partnership leverages the strengths of both companies as technology pioneers in the real estate sector.
As the Dubai property market enters 2024, a balanced outlook prevails, emphasizing stability and cautious growth. The focus on transactional growth and strategic partnerships reflects the industry’s adaptability to evolving market dynamics, ensuring resilience and sustainability in the real estate sector.
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