Out of the box

A comparison that does not fit the market situation

Ismail Al Hammadi

August 17, 2021

In recent times, a kind of comparison has spread in the real estate market, and it has been fueled by social networking sites, where the discussion is intensifying about comparing the prices of real estate units for the current year, with previous years, especially the year 2008, but the remarkable thing is that whether prices have increased or decreased in value in That year, on what basis is the comparison made between 2008 and 2021?

A march of time, a portfolio of achievements, a series of changes, and the whole world has changed, so how do we compare that year and this year in real estate prices?

It is very unfair to compare current real estate prices with past years, because Dubai moves from year to year, from one level to another, and from one achievement to another.. the laws have changed and opportunities have changed.. the real estate itself has changed.

In past years, the tenant might have found in the area three to six buildings as a maximum for rent, which puts the owners in a position of control and control of prices, but today we find more than 40 buildings in one area, which establishes intense competition between the owners, and is reflected effects on price.

The same applies to purchase and ownership operations. The map of Dubai for freehold ownership is currently different from the map that was in 2008, as the freehold areas expanded, and the number of developers active in the real estate sector increased, as well as the number of projects in the same area.

To name a few, in 2016 Dubai Creek had only three towers, but today the number of towers in this area has exceeded 36.

The spaces have also changed. Between 2015 and 2016, for example, most freehold projects witnessed a shrinkage in spaces, as the developers wanted to increase the number of units for sale (don’t be surprised if the price of the two-room apartment changes), as well as the designs, as well as the outdoor spaces. Views and service facilities that have also changed.

The nature of the projects themselves has changed, and the focus has become on lifestyle and quality, adopting the principle of sustainability, and promoting green areas and water spaces.

Changes are many, and global developments are accelerating, and if you want to compare prices between the past and the present only, take into account all these variables, and instead of comparing, everyone should support the new numbers for the coming years, so that the year 2022 will be a number that leads in numbers, and Dubai’s series of successes until today.

Over the past years, Dubai has been competing with itself, and its growth paths have changed on their own, in response to local and global developments, or in other words, the speed of Dubai's response to these developments is what brought about change in it, and in its various economic sectors. Therefore, the comparison of prices today with the prices of 2008 , a comparison that is not worthy of the current market situation, and there is no need for a dry comparison, and if we do compare, let it be a feasible comparison that fills the shortage, if any, and supports the establishment of demand, not just publishing the offer.

• Dubai is moving from one level to another, and from one achievement to another.

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