UAE: Real estate list price and its effective utilization - how?

Dental specialist Dr. Tina John from Dubai found a townhouse with a large garden within her budget - below the AED 2 million listed on a real estate portal. Tina John contacted an agent to find out more details about the property, as she was looking for a communal living space that was suitable for living with children and pets. She found that the Noor townhouses in the Town Square neighborhood best suited her needs.

"Our agent helped us negotiate the transaction price, which saved us about 10 percent off the listed price. We purchased this townhouse in September 2020 and we have used the money we saved to improve our garden," said Tina John.

The market in'. 'Dubai

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According to recent quarters, Dubai is currently a buyer-dominated market. Gaurav Aidasani, chief executive of Union Square House, said Dubai is currently a buyer-dominated market.

"Depending on the properties, buyers are successfully negotiating price reductions of 5 to 10 percent of the initial price. Some buyers have been able to achieve price reductions of up to 15 percent on apartments if they have been on the market for some time," explained Aidasani.

"In places where service charges were higher, the seller appears more willing to compromise and reduces the price. However, in communes with developed infrastructure, the difference in house prices is usually smaller po''compared to individual and unfinished properties,' Aidasani explained.

Premium price announcements

Logistics executive Deepak Kushalani is considering selling his three apartments in Burj Vista in the city center at a premium price that is 15 percent higher. "Generally, apartments in Burj Vista are selling at a premium price that is 8 to 10 percent higher than other apartments in the area," said Kushalani, who considers Dubai his home and is an experienced Dubai real estate investor.

In 2019, he and his partners purchased six two- and three-bedroom apartments on one floor of Burj Vista in Downtown Dubai for investment. "I had previously sold three of the six apartments, one rented on''also purchased six plots in Pearl Jumeirah in 2015 directly from the developer to build their family homes. "I had noticed a drop in the prices of these plots a few years ago as many new projects with ready-made villas were launched. But now I have been offered much higher prices on sale as villas are now more in demand than apartments in the post COVID era," said Kushalani.

Set pricing strategy

The type of market determines the difference between the initial price and the final selling price, meaning it is a buyer's market (where supply is higher than demand) or a seller's market (where supply is lower than demand). Jeanne Joshinke, chief operating officer of Property Monitor, said that if it is a buyer's market, the seller should