Transactions Rise as Buyers Seek Value
    Area GuideApril 7, 20193 min read

    Transactions Rise as Buyers Seek Value

    More properties are changing hands as buyers respond to lower prices and flexible terms. Why activity is up even while prices remain soft.

    Chief Investment Strategist

    Former Goldman Sachs MD with 25 years in global real estate. James has advised sovereign wealth funds and ultra-high-net-worth families on $50B+ in transactions across MENA, Europe, and Asia.

    Share:

    Transaction volumes in Dubai have increased as buyers respond to lower prices, flexible payment plans and the new long-term visas. Although prices in many areas remain soft, more people are buying, suggesting that the market is finding a floor in some segments.

    Why activity is rising

    • Value: prices are attractive compared with past peaks.
    • Terms: developers offer generous payment plans.
    • Residency: longer visas encourage ownership.
    • End users: residents buying instead of renting.

    Why prices remain soft

    New supply continues to arrive, and sellers in some segments face competition from developers offering incentives.

    Where activity is strongest

    Off-plan projects from strong developers and completed homes in established communities account for most activity.

    What it means for buyers

    Buyers still have strong negotiating power, but the best properties are attracting more interest.

    What it means for sellers

    Sellers who price realistically are finding buyers. Those who hold out for higher prices may wait longer.

    Price discovery in a soft market

    When prices have been falling for some time, buyers and sellers often disagree about value. Sellers anchor to what they paid or to past peaks, while buyers anchor to the lowest recent sales. Rising transaction volumes help close this gap, because more completed sales provide clearer evidence of current prices. Buyers can use this evidence to make well-supported offers, and sellers can use it to set realistic asking prices. Agents who present recent transaction data, rather than asking prices, help both sides reach agreement. As more transactions complete, the market gains a clearer sense of where value lies, which in turn encourages further activity.

    Our view

    Rising activity is an encouraging sign. We help buyers act on opportunities and sellers price competitively in a market that rewards realism.

    TransactionsMarket activityValue