By Justus Scout
When you’re buying a new house – whether it be for the first time or fifth – you should always do some research first. But it can be hard to know what to look out for if you’re new to the market, or buying a different property type. Luckily for you, we’ve comprised a list of three of the most essential factors to consider when you’re looking to buy a new house or villas for sale in Dubai or any off plan properties in Dubai.
Average days on the market
The term “average days on the market” refers to the number of days it takes for a property to be sold by a private treaty, from the day it initially goes up for sale to the day it’s listed as sold.
Generally, the higher the average days on the market, the better for buyers, because it indicates an excess in available properties and thus creates more options for the potential homeowner to invest in. Sellers will be desperate for you to choose their property over any other, giving you more bargaining power when it comes to negotiating a deal that’s good for you.
Price per square metre
Though there are multiple factors that affect the price of a property, including the number of bedrooms, the location, and parking spaces, one of the largest determiners of how much a property is worth comes in the form of price per square metre – in other words, how much land (or in the case of apartments, floor space) there is.
To get a rough estimate of the price per square metre for a property, simply find similar recently sold properties in the area you’re looking in (ideally within the last six months) and divide the price by the size. The number you end up with is the price per square metre.
Depending on whether the property you’re eyeing up is larger or smaller (roughly) than the property you did the maths on, you will know if you can expect to pay more or less per square metre.
Auction clearance rates
The percentage of properties sold at or prior to auction is known as the auction clearance rate. What this demonstrates, effectively, is the confidence that people have in the housing market on a weekly basis. Generally, the higher the percentage, the higher the prices will be.
A rule of thumb is that auction clearance rates below 60% demonstrate a potential fall in prices, which might be the ideal time to snag a property bargain.
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