4 Property Trends to Expect in 2018

Written by Arpan Ghosh
In 2017, Dubai saw a huge surge in off-plan sales, outmatching the sales of physical units by a significant margin. Property prices continued to dip lower, and office space became a surprisingly strong prospect for buyers and investors. What might we expect from this year? LuxuryProperty.com presents its 2018 property outlook.

1)  More Flexible Payment Plans

While the implementation of VAT at the start of this year has not affected the residential market, off-plan is likely to dominate the market again. According to the VAT regulations, no tax will be levied on residential sales that take place within three years of project completion. Anything sold after the three-year window will be taxed. Thus, developers will want to sell their stock as soon as they can, possibly with the incentive of more attractive payment plans.

2)  More Unique Developments

There is no getting around the fact that the luxury market in Dubai has become saturated. If developers want to ensure swift and tax-free sales, they will have to provide something more than the usual penthouse or beachfront apartment. Whether it’s an improvement in the overall build quality, a unique aesthetic or a more efficient use of space, Dubai’s luxury offerings need to stand out to attract the discerning buyer.
More Unique Developments

3)  Better Pricing on the Secondary Market

Property sellers have faced an uphill task in 2017 when going head-to-head with the generous pricing and payment plans of off-plan options. Overt optimism amidst current market conditions has led to a huge gap between the prices listed by sellers and the offers that they have been receiving, as much as 11%, according to research from Global Capital Partners. As prices continue to soften, however, this gap should begin to narrow.

4)  Blockchain

Dubai aims to be one of the world’s foremost smart cities by 2020. Apart from drone taxis and artificial intelligence initiatives, the city is also looking to use blockchain for all major transactions, from bill payments and government applications to real estate contracts. The UAE’s own cryptocurrency, known was emCash, was introduced in October of 2017, and we are eager to see how the country’s blockchain strategy develops over the coming year.