Dubai Residential Sales Fall 30%, Investors Pivot to Milan
"10Haber: Dubai property sales saw a 30.5% month-over-month decline in March. As regional risks push billionaires toward Milan, Woven CEO Burak Ustaoğlu reports from Dubai on the 'wait-and-see' trend."
Dubai Real Estate Market Shrinks by 30.5% in March
Continued geopolitical tensions have led to a significant contraction in Dubai's real estate activity. Data from DXB Interact shows that residential sales volume dropped from 17,027 units in February to 11,828 units in March—marking a 30.5% decline within a single month.
Transaction values took an even harder hit, falling 36% from $16.53 billion to $10.58 billion. While the market index dropped by 21.23%, the remaining active investors are shifting their focus toward off-plan projects with longer payment terms and lower initial deposits to mitigate immediate risks.
Burak Ustaoğlu: "The Market Has Become Cautious and Selective"
Reporting directly from Dubai, Woven CEO Burak Ustaoğlu shared insights on the current investor sentiment. Ustaoğlu noted: "Based on our on-the-ground observations, the market has entered a 'wait-and-see' phase. Investors are avoiding impulsive decisions and are becoming far more selective, prioritizing projects with manageable monthly installments over long durations."
Milan: The New Safe Haven for the Global Elite
As security concerns mount in the Gulf, Milan is emerging as the primary alternative for high-net-worth individuals. Real estate prices in Milan have surged 38% over the last five years, reaching an average of 5,171 Euros per square meter. Ustaoğlu warned that while Dubai prices are currently stable, a conflict lasting beyond three months could trigger price drops of up to 20-30% in the secondary market.
Source: 10Haber – Full Report