Market Stability and Projections
Dubai’s real estate market is poised for stability in 2024, with average property prices expected to remain steady or experience modest growth. The previous surge in prices has shown signs of stabilizing, indicating a potential shift towards a more balanced market. Industry insiders anticipate a period of consolidation, allowing the market to absorb the appreciation observed in recent years.
Luxury Segment Dynamics
While the overall market stabilizes, the luxury real estate segment is projected to witness decent growth, albeit at a slower pace compared to the previous year. Demand from high-net-worth individuals and a shortage of supply in this exclusive segment contribute to the anticipated growth. Michael Lahyani, founder of Property Finder, emphasizes the importance of stable prices to facilitate the market’s digestion of previous appreciation.
Transaction Forecast and Market Trends
In terms of transactions, Lahyani predicts a 15-20% growth this year, indicating a slower pace compared to the previous year. The focus is on maintaining a healthy balance, avoiding inflationary pressures on property prices. The expectation is for transaction volumes to grow steadily, and Lahyani suggests that a growth rate between 15-25% would be ideal for the market’s overall health.
Outlook for the Luxury Segment
Lahyani anticipates continued growth in the luxury real estate segment, particularly in double-digit price ranges. Despite the overall stabilization, this exclusive market segment remains attractive to investors seeking premium properties in Dubai.
Location-based Price Dynamics
Ari Kesisoglu, president of Property Finder, sheds light on the volatility of location-based prices. In a market where location plays a crucial role, pricing can be super volatile. Kesisoglu provides an example, illustrating how limited supply in a specific location can significantly impact prices, even if the average prices remain relatively stable.
Strategic Merger Announcement
In a significant move, Property Finder announces the merger of its Turkish subsidiary, Zingat, with Hepsiemlak, a Doğan Holding company in Turkey. This strategic partnership positions Property Finder as a minority stakeholder with a 20% share in Hepsiemlak, showcasing the company’s confidence in the long-term potential of the Turkish real estate market.
Growth Plans and Global Expertise
Reflecting on the merger, Michael Lahyani expresses confidence in the Turkish market’s potential and emphasizes the alignment of the partnership with Property Finder’s vision of expanding market share in the MENAT region. The collaboration aims to leverage the global experience of Property Finder, contributing to the growth and development of the real estate sector in Turkey.
Continued Growth in Turkey
Ari Kesisoglu echoes Lahyani’s sentiments, highlighting the growth plans in Turkey. Property Finder’s journey in the Turkish market, from acquiring Zingat in 2017 to the recent partnership with Hepsiemlak, positions the company as a key player contributing to the growth and development of the real estate sector in Turkey.