Right now, if the investment period is at least 5 years, this is probably one of the best times for you to Dubai Investment Real Estate. But you can't just rush in and you have to buy the right kind of asset to pick up any deal that you find. Let's be frank, we'd all love to invest in value-added things. But if it was fast, they would all be doing it. The reality is that we humans do not rationally think or behave. Most individuals depend on optimism instead of an investment philosophy. But they must come down in price for you to produce value from investments. It offers a chance for you to take advantage of it. But you, both physically and mentally, need to be prepared. When things are up and up, it's much easier to invest your money, but it takes real bravery to bring your money into assets that have experienced double-digit declines. The truth is, after things have been corrected and come down in price, it's probably one of the best times to invest. That is where it finds meaning. Investing in value is seeking things that appear underpriced-the market undervalued
We assume that in the market right now, certain opportunities are present. The environment has changed in the last 6 months, leading to massive changes in the behavior and desires of people. In terms of land, individuals prefer larger spaces to accommodate a home office or room for a home school. People often enjoy outdoor spaces inside a neighborhood with amenities, such as patios/balconies and yards. In addition, individuals are more open to living further away from cities as it is becoming more common to work from home. This in turn leads to less frequent driving to work. This is somewhat different from the recent market patterns of people who choose to live in cities searching for shorter commutes.
The market narrative was right, supply outstripped demand in Dubai, resulting in a downward pressure on Real Estate Companies in Dubai prices. But looking under the surface is important. If demand can't keep up, excess supply will lead to lower prices. However, if supply for particular types of units are low and demand is high, prices may rise, even if the overall market may suffer. We are beginning to witness just that. There are currently 152,364 units under construction with majority of those units to be delivered next year in 2021. The actual realization rate per historical results is well below 50 percent, which means that it will take a few years for these 152,364 to complete.
Just 26,323 of the 152,364 units under construction are villas, roughly 17 percent of the supply planned. 17,711 villas are projected to be delivered next year, although the actual delivery of units would most likely be lower due to the recent pandemic and historical realization levels. 27 per cent of all transactions were for villas since the lockdown back in April. The demand for villas has clearly increased, and supply is limited, leading to a rise in the price of villas. We have already begun to experience that in AED 2.2 for 2- and 3-bedroom affordable villas in particular. Uh, millions.