Articles in business and real estate periodicals are rife with conjecture about the future of the property market. However, as real estate investors need to stay on top of their game if they are willing to make a profit, they need to be able to obtain the necessary information ahead of time. This would enable them to make timely, knowledgeable decisions regarding the state of the property market and where profitable prospects exist by accessing reliable and current real estate data.
There is no optimal metric, just as no measure should be employed in a vacuum. Several indicators, including supply and demand, prices, and inventory levels, provide information on the status of the Abu Dhabi real estate market. Other major factors are geographical proximity and the general economic climate.
There are a lot of financial considerations that suggest being current on real estate market trends is a good idea. Buyers, sellers, and investors may all benefit from being abreast of recent real estate market movements in order to determine when it’s best to join or leave the market. It will aid them in selecting the best time to move, whether that is to sell an item for a profit or to buy at a low price.
Reliable Market Insight
To help investors better understand and capitalize on market trends in the Abu Dhabi real estate market, DARI introduced the Market Insight Dashboard.
This dashboard provides investors with data on the property market so they can see trends and make informed choices. For instance, investors may protect themselves by diversifying their portfolios or waiting for the market to stabilize before making investment choices if market measurements signal a possible decline in the real estate market. Alternatively, the data may reveal that actual sales prices for similar properties have been lower than the original asking price, as is sometimes the case when the market cools and demand drops, giving the buyer additional leverage in negotiations.
Real-time, trusted market statistics
Statistics provided by DARI’s market dashboard reflect the current position of Abu Dhabi’s property market. This covers quarterly Real Estate Price indexes, the average sale and rental prices of properties in Abu Dhabi, and the number of sales and mortgages closed in the city (apartment, villa, and land). Many indicators, including municipality, district, property type, and number of bedrooms, are available for customization on the dashboard.
Investors may gain a sense of the prospective return on investment by, for instance, looking at average house prices. By doing so, they may estimate how much they can charge in rent or how much the property is worth on the open market. More importantly, they can figure out whether or not a home is priced fairly. An investor may have second thoughts about purchasing a home if the asking price is far higher than the median price of comparable properties in the region. Yet, if a property is priced lower than the market average, it may be a good investment opportunity.
Similarly, Real Estate Price Indices (REPIs) provide useful information to investors on the status of the market. An increasing trend in an index over time may suggest a high level of interest in local real estate, which in turn may attract more investors. Nevertheless, a declining trend may point to an oversupply of houses or a slump in demand, both of which might cause property prices to fall and reduce investment opportunities.
An essential addition to your due diligence mix
Real estate investors should arm themselves with as much data as possible before making any purchases to ensure that their choices are well-informed and profitable. Rental yields and economic circumstances are only two of the numerous variables that affect the ups and downs of the real estate market. While understanding the vacancy rates is helpful, it is just one piece of the puzzle when deciding whether or not to invest in a piece of real estate. Before making a decision, investors should weigh many indicators. This is when DARI comes in handy.
It is important for real estate investors to include market indicators like average house prices and number of transactions in their due diligence process, since these measures may help them understand the status of a market and spot patterns that may affect their investments.