The temperature’s getting hotter outside so is the Dubai property market. Prices and demand are recovering. In prime villa communities, in particular, we’re starting to see double-digit price recovery over the last three or four months.
The question for a lot of homeowners is: Is now a great time to sell or should I hold? Or perhaps, should you hold on to your property with a view that prices will go up further?
Our view is, yes, we think property prices will continue to climb. Although not at the rate we’ve seen them increase over the last three or four months. But we suspect there’s still room for property price growth over the next the coming years. If you own a property, you don’t necessarily have to sell now. However, there are very compelling reasons why you should look at now as a good time to sell.
The desire and need for liquidity
If you need to sell a property now for business or family reasons, you can be confident that this is not a bad time to do it. In certain communities, you may be looking at prices from 10 to 30% higher than last summer. Not a bad time at all. What we suggest is to go and get a property valuation. You may just be surprised by what you can achieve in today’s market.
Looking to trade up
The best time to trade up and sell a smaller property to buy a bigger property is always when prices are at their lowest. We suspect prices were at their lowest last summer. However, we’re still in a situation where it is still a good time to trade up. If you wait much longer and property prices continue to grow, that gap between the smaller property you’ll be selling and the bigger property you wish to buy will get wider and wider. If you’re thinking about trading up, again get a valuation going on your property before getting yourself out there looking to buy.
Better ROI elsewhere
You might look to sell now if you consider the money you have tied up in a property could get you better returns elsewhere. For example, you purchased a property at a higher price and the yield you are currently getting is not working for you. You might be better off selling that property at today’s prices which are fairly positive and then reinvest that money. This is especially true if you’re planning to leverage today’s low-interest rates in hopes of a greater return.
So, should you be selling now? It’s really up to you. What we advise is getting a valuation done on your property. Again, you might be surprised to know what it’s worth in today’s market. If you’re in doubt, speak to someone who knows what’s happening, who can tell you what’s selling, or who is an expert in your local area.
Luckily enough, we’re that someone you can count on—get in touch!