Dubai real estate market: Arbitrage
Source: REIDIN , Author: Posted by BI-ME staff
Posted: Wed May 16, 2018 5:14 pm

UAE. Over the last 6-12 months there has been a reversal of trends from off-plan to ready units as money flows switch from the former to the latter. There has been a slump in off-plan sales, while ready transactions remain relatively stable.

This phenomenon has already been highlighted in our previous report entitled, "Dubai: Reversal of Fortune".


The above graph reveals that investors have already re-allocated monies where there has been a discount and in certain cases have started to "arbitrage" away the difference (i.e. Sports city). By the same extension of logic, we opine that there will be a similar move over the course of the year in communities like Downtown and Dubai Marina.
 
In a city that is rapidly urbanizing, the majority of activity is expected to be in the off plan segment. However, as the city matures, in "microstructure" markets, (each community), the gap between ready and off plan prices becomes one of paramount importance in determining asset allocations.
 
Despite the incentives offered in the off plan space, investors will gravitate to areas where there is a relative price advantage. This "arbitrage" effect is the overriding factor as investors continue to switch from primary to secondary markets.
 
To read the full report click here: http://bit.ly/2jTwzAh

Click here to read the original article on the REIDIN website

About REIDIN
Since 2007, we have been known for being the leading provider of property data and real estate information company for emerging markets. From being the first company to offer price indices enriched with hard-to-get real estate data in Turkey and UAE, we have become a global player in Data Analytics and Data Science utilizing the most advanced AI algorithms and techniques to process large amounts of our proprietary and client data.

Today we are a multidisciplinary Data & Analytics Company helping our clients make better strategic decisions, increase revenues, lower costs, and beat competition. Among our clients are government organizations, banks, insurance companies, retailers, property developers, brokers, consultants, and appraisers.

For more information, please visit www.reidin.com


About Unitas
Unitas believes in in-depth planning and discipline as a mechanism to identify and exploit market discrepancy and capitalize on diversified revenue streams. The purpose of Unitas is to manage, direct, and create wealth for our clients.

For more information, please visit www.unitasconsultancy.com

 

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