Current Outlook of Dubai Property Market
The latest bear market in Dubai real estate is now five years old and prices of villas and apartments even in prime communities have fallen a cumulative 25 to 30%. There has been a lot of talks recently about the state of the Dubai Property Market. Various consultancy firms have reported drops of between 10 and 15% over the last 12 or so months. The rental market has also seen a dip in prices although to a somewhat lesser degree. As a result, buyers entering the market today are actually experiencing higher rental yields due to the reduced purchase price in comparison to rent achieved. The reasons for the current state of the market do vary and have as much to do with factors within Dubai itself as the global economy. Lower job numbers, the strength of the US dollar as well as Oil prices are just some of the contributing factors.
While it’s hard to predict where prices will go from here we at Off-Plan Properties feel that a bottoming out and stabilization in prices is not too far away. Dubai still has a growing economy, a growing population and has well and truly established it’s self as a safe haven of the entire Middle East region. These, along with the nearing of the 20/20 expo are just some of the reasons we feel that investing in Dubai is a great choice in both the short and long term.
This above sentiment seems to also be felt by some of Dubai’s largest developers which have continued to release and sell out new projects. Earlier this year Dubai Properties released and immediately sold out of its Serena villas range. This was just recently repeated by Emaar which sold out its new Dubai Marina project 52|42 in a matter of hours. Achievements such as these are a true sentiment to the strength of the Dubai property market and a clear vote of confidence by both local and international investors. Standard & Poors, no broker or ad-dependent newspaper, expects a cumulative decline of 20% in Dubai property prices in 2019 – 2020. This is not the time to catch a falling knife!
