A sign of maturity

Dubai’s property market is in the process of change as investors weigh their options

Danube sale signs in Emirates Hills in Dubai. Sarah Dea / The National

A dip in the number of property buyers can be interpreted as a sign of slowdown in the housing market, but this is not always the case. When Danube Properties’ latest launch, Glitz 3 – a development of 352 apartments at Dubai’s Studio City – didn’t enjoy the same rush of buyers as its previous two launches,the company’s chairman Rizwan Sajan said that the market appeared to be “slow”.

Perhaps, but is this necessarily a bad thing? The absence of a mad rush by investors keen on flipping contracts for short-term gain is a sign that the market is moving towards greater maturity, where customers weigh their options more carefully. The large number of new projects that are coming up in Dubai means competition is heating up and that properties will increasingly need to appeal to potential buyers’ sense of value. The apparent slowdown may indicate the start of a new housing phase, where people are buying property to live in, rather than as a short-term investment to flip on.