Dubai property hunters have an average of 6% negotiating power
New data from dubizzle Property suggests an increased demand for the mid-market segment and highlights a gap between actual transaction prices and advertised amounts.
By comparing advertised sales prices in mid-market communities advertised on the dubizzle platform with transaction prices recorded by the Dubai Land Department’s public data, dubizzle property found that, on average, properties were priced about six percent higher than the price they were transacted at.
“Working with a landlord to bring their property to the market at the right price level is perhaps the agent’s most important job,” said Paul Kelly, Operations Director at Allsopp & Allsopp real estate agency. “It has to be at the right level to attract interest whilst at the same time leaving themselves some room to negotiate a deal and most importantly, ensuring that they can sell their property in a good time frame and for the maximum sales price that is achievable in the market.”
Of the areas analysed, Discovery Gardens was found to have the largest price gap, with properties selling at 20 percent lower than their advertised sales price. Coming in second was Jumeirah Village Circle, which recorded an 8 percent gap, and Dubai Sports City, with a gap of 2 percent.
“We always encourage our users to be aware of the average price for each area and provide them with as many tools and information as possible to make well-informed decisions. The knowledge of the price discrepancy in advertised versus actual price will empower our users and equip them with the negotiating power that is essential in the final stages of purchasing a property,” noted Ann Boothello, Head of Marketing at dubizzle.
Other areas analysed include Barsha Heights, Dubai Festival City, and Jumeirah Lakes Towers, which witnessed gaps of 15 percent, 7 percent and 8 percent respectively.
“I believe this is healthy gap that allows buyers bargaining power and allows sellers room to reach a more realistic print point to transact at,” explained Mahmoud Hesham El Burai, CEO of the Dubai Real Estate Institute.