Dubai property market is still very confused with which direction it is taking, many Real estate surveys and reports are confusing many sellers and buyers and are not certainly helping a recovery and indeed setting a mental mind set on buyers and sellers which is not helping either.

Many owners are confused with regard to the valuation and worth of their property and now many are holding out for prices, with so many complex factors regarding valuations which are in fact away from the property itself, for example oversupply in the area, finance options available to buyers, the amount of buyers active in the market place obviously dictates interest there will always be more buyers for a studio apartment than there would be for a multimillion dollar villa in Emirates Hills for example, and of course the financial circumstances of the property owners themselves who are asking “do we sit with an empty property and wait for the market to improve”.

On the other hand many buyers are confused believing that in today’s market of oversupply that a deal should be done and will make offers in some cases 30% less than the asking price which in some cases as already been drastically reduce and now purely is a business decision based on obtaining a deal or the ratio return for rental potential against purchase price and the passion for purchasing a home is no longer one of the factors that comes into the buying decision.

Recent experiences have shown that clients have brought properties for their own residential use, that have been second and third choices rather than their first just because they could make lower offers than the price been asked by the owner and would be accepted, which in some cases was not based any science apart from the fact the owners hadn’t reduced their prices so much previously.

Only time will tell how the real estate market will change but the for the short term buyers, sellers and real estate agents are going to continue having a frustrating time

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