After the rally in the luxury real estate market and the villa sector in 2021, buyers' interest should shift to more affordable housing.
In any real estate sector, there is a price limit, with unattractive offers, buyers prefer to move on. There is also an offer that is always quickly consumed if it becomes the subject of attention.
Houses are not built quickly.
This is what happens in the luxury property and villas sector. A rapid reduction in supply only spurs price increases, and they are less satisfied with buyers. In this situation, it is natural that demand moves to other sectors.
In this case, it is affordable housing — apartments.
One of the main conclusions of 2021 was the failure of major narratives about the local real estate market.
Both the narrative of oversupply did not prevent the Dubai market from growing significantly, contrary to many predictions, and the narrative of popular large-scale real estate now does nothing to prevent buyers from moving into new sectors of the market, even if they are small-sized apartments.
In a market dominated by investors, the only thing that matters is whether real estate can provide attractive prices with high returns.
As soon as elite and large-scale real estate ceased to offer such advantages, many investors turned to the broader market.
Currently, a lot of apartments on the market are small-sized housing in the mid-price segment. This is a consequence of the long transition of developers to bring small housing units to the market to maximize profits.
This does not prevent apartments from becoming popular, especially thanks to Expo 2020.
Nevertheless, it is expected that new projects will be launched in the apartment segment, which will increase in size while maintaining affordable prices.
