Setting the right sale price for your Dubai property
Pricing is the biggest factor to consider if you’re thinking of selling your home in Dubai. You don’t want to end up selling for less than your property is actually worth, but there’s no doubt that a lack of industry knowledge can lead to lost opportunities and ultimately, less cash. At the same time, you also don’t want to set the asking price so high that it scares off prospective buyers. There’s a fine balance to be struck. To make that prospect easier, we have rounded up some crucial tips and techniques that will help you to come up with the potentially perfect price for your asset. Here is our guide on how to come up with the right sale price for Dubai property.
Dubai Property Pricing Strategy
Whether you’re looking to sell an apartment in the heart of Downtown Dubai or a villa in Palm Jumeirah, one of the most critical decisions you’ll face is setting the right sale price. A well-priced property can make a significant difference in how quickly it sells and whether it attracts serious buyers.
With that in mind, here are some pointers on home pricing strategies, based on factors, such as local market conditions, listings and more.
Understand Market Trends
The Dubai property market is influenced by various factors, including global economic trends, local demand, supply cycles and government regulations. Before setting a sale price, conduct thorough research on the current market conditions:
- Supply and Demand: Check if the market is favouring buyers (more supply than demand) or sellers (more demand than supply). This will influence how aggressively you can price your property.
- Location-Specific Trends: Property prices vary significantly by neighbourhood. Areas like Dubai Marina, Business Bay and Jumeirah Lakes Towers have their own micro-markets, so knowing what’s happening in your specific area is crucial.
- Market Timing: Dubai’s real estate market can be seasonal. For example, property sales often peak before Ramadan or during the cooler winter months. Aligning your sale with favourable periods can help you get a better price.
Account for Property Type
The emirate’s property market is diverse, ranging from off-plan developments in Dubai to ready-to-move-in homes. The type of property you’re selling can affect how you price it:
- Off-Plan vs. Ready Properties: If you’re selling an off-plan property, you might have to price it differently from a completed, ready-to-move-in unit. Off-plan properties often require a lower price because buyers are investing in a future asset rather than one they can immediately occupy or reap returns from.
- Luxury Properties: If your property is a high-end villa or penthouse in areas like Emirates Hills or Palm Jumeirah, the pricing strategy may be more complex. High-net-worth buyers expect exclusivity, premium finishes and bespoke features, so your pricing should reflect that for these luxury properties for sale in Dubai.
Another option is to prepare your real estate as a furnished property. A ready to move in apartment for sale in Dubai will usually fetch a higher price.
Leveraging Comparable Property Sales
One of the most effective ways to price your property is by looking at comparables, or “comps.” Comps are recently sold properties that are similar to yours in terms of location, size, age and condition.
- Neighbourhood Data: Look for properties within a 1-3 km radius of yours that have been sold in the last six months. Dubai Land Department’s data on Dubai Transactions provides reliable insights into current pricing.
- Get a Property Valuation: Use TruEstimate™ by Bayut, an AI-powered property valuation tool that provides accurate, data-driven price estimates for your freehold properties. This will help you set a competitive and realistic sale price by ensuring it’s aligned with market trends to attract serious buyers, and strengthen your negotiation position.
- Adjust for Differences: If your property has unique features—such as a stunning Burj Khalifa view or upgraded interiors—you may be able to price it higher than similar properties without these features.
- Consider Similar Listings: Scour the listings on Bayut and dubizzle and keep an eye out for properties that have been on the market for too long without selling. This may indicate overpriced listings and help you avoid setting your price based on unrealistic expectations.
Work with an experienced real estate agent
Hiring a qualified real estate agent who is well-versed in Dubai’s market can be a game-changer. A professional agent will help you determine the right sale price for Dubai property based on real-time data, years of experience and access to a wider pool of potential buyers.
- Expert Appraisals: Agents can perform a comparative market analysis (CMA), giving you a detailed report on how your property stacks up against similar listings.
- Explore Options: It is important to do your due diligence by researching multiple agencies and settling for one that has a particularly good track record. This way, you know that you are being offered sound advice. A good option is to rely on TruBroker™ by Bayut for an agent who meets your requirements.
- Negotiation Strategy: Setting the right asking price also involves leaving room for negotiation. Agents can advise on setting a price that allows you to negotiate without underselling your property.
The right professional agent will bring a great mix of industry experience and invaluable knowledge to the table. They’ll listen to your needs, take your own research into account and use their knowledge of the local market conditions to set the best asking price for your property. They will also be more familiar with the intricacies of property sales in the UAE and the associated documents like RERA forms.
Your best bet is to hire the services of a reputed real estate agency. They will assign you an agent that is particularly skilled and experienced in evaluating properties that are similar to your own. Furthermore, they will do the most of the legwork for you.
Conduct a comparative market analysis
An experienced real estate agent will be able to compare your property to other similar properties in the area, taking into account factors that you may not have considered with regard to setting your asking price. This might include its age, general condition, square footage and upgrades.
- Consider Upgrades: Here’s an example. Let’s say that you’re aware that a homeowner in the area with a similar floor plan as yours has sold his property for a higher price than its actual market value. What you may not be aware of are upgrades that the property owner may have introduced in their home, like an extra bathroom or a remodelled kitchen. Taking upgrades and other valuable factors into account will help you determine an appropriate asking price for your own property.
- Compare Square Footage: Compare the price of similar square footage properties in similar areas. You could also read our detailed market trends reports to learn the average ‘price per square foot in popular neighbourhoods all across the UAE.
The local housing market will have a great impact when it comes to pricing your property correctly. For example, if you are in a seller’s market, where demand is more than the homes for sale, you can price your property slightly higher. However, things may change drastically if you find yourself in a buyer’s market where demand is less and buyers have a clear advantage. In such a case, you may have to price your property competitively to pique interest.
Factor in Additional Costs
When setting the sale price for Dubai property, consider the additional costs involved in the selling process:
- Agent Commissions: Real estate agents in Dubai typically charge between 2-5% of the sale price as their commission. Make sure to factor this into your pricing strategy. Contact the real estate agencies in Dubai for a quote.
- Transfer Fees: The Dubai Land Department charges a 4% transfer fee on the property’s sale price, shared between the buyer and seller. It’s common to negotiate this cost with the buyer, so be prepared to adjust your asking price.
- Marketing Costs: Professional photography, virtual tours and premium listings on property portals like Bayut and dubizzle can enhance your listing’s visibility but may incur extra costs.
Other Tips for Setting the Right Price for Dubai Property
Here are other tips that can give you an edge over the competition.
Tour active listings homes
Actively listed homes often do not tell the whole story. These listings are your competitors and it pays to see what they are actually offering to buyers before you set a price for your own property. To get an idea, you or your agent can tour these active-listed properties. This way, you see what buyers will see when they visit your own home.
A personal tour of similar active-listed properties can give you a general idea of what you like or dislike about them. More importantly, it will help you determine why prospective investors or buyers may prefer these homes over your own. Add anything to your own home that may make a better impression and adjust the price accordingly.
Leave a little room for negotiation
Factors like emotional attachment may discourage you from whittling down the price tag of your property, especially if it is one with a lot of memories; however, this may not be the best course of action, especially if you have priced your property higher than its market value. Keep the asking price under current buyer expectations and leave a little room for negotiation. This can result in a favourable outcome for both you and the buyer.
FAQs
How to find the sale price of your property?
Several factors come into play in a property’s valuation. This can include everything from its location to general condition, upgrades, square footage, market trends and other details. A professional real estate agent can help you evaluate your property and price it favourably.
What is a lowball offer?
A lowball offer is one that is significantly lower than its market value and the seller’s asking price. To know about the factors that go into putting a property up on the market in the UAE, start by learning how to sell your property in Dubai.
Is your home still on mortgage? Learn all about selling mortgaged property in Dubai.
Is Dubai a good place to invest in property?
Judging from Bayut’s annual property sales report for 2024, that certainly seems to be the case. Property sales have experienced an overall boom with areas like Jumeirah Village Circle and Business Bay in the lead for affordable apartments in the emirate.
Is the Abu Dhabi real estate market healthy for buyers?
According to Bayut’s annual Abu Dhabi sales report for 2024, the capital is a good option for smart investors. Areas like Al Reef, Al Ghadeer and Masdar City offer a range of modestly priced flats.
That concludes our guide on setting the right sale price for Dubai property. Check out how factors like market analysis and client requirements can help close deals fast with our tips to selling your property quickly in the UAE.
Are you selling a home in Dubai? Consider factors like the cost for selling a house in Dubai before you sell.
For more insight into the situation of real estate in the United Arab Emirates, stay tuned to MyBayut.
