Dubai’s real estate market is forecasted to usher in better tidings this year and this is heartening news for the industry which has been shaking off a prolonged slump for quite some time now. Dubai’s real estate prices, which were at their peak levels earlier, have started coming down over several months now, reaching near-bottom line levels. However, what this has done for the market is that property in Dubai is now more accessible to a wider and larger section of buyers.
Investors are also more attracted towards investing in Dubai real estate at the moment since property prices for luxury real estate are comparatively cheaper than other major global cities. All in all, the market is highly favorable for both end-users and investors while the growth of the rental housing segment has seen considerable investments flowing into this category as well. The Government has taken several positive measures including visa regulations, reforms for balancing demand and supply in the realty market (including the establishment of a new higher committee for tracking the real estate sector) and of course, attracting new businesses and investors to the Emirate. These measures have paid off and will strongly benefit the Dubai property market in 2020 along with the upcoming World Expo which could be another game-changer of sorts.
Top predictions for Dubai real estate market this year
Experts feel that property prices in Dubai will start stabilizing from 2020 onwards and will ultimately stabilize by the year 2022. They feel that 2020 will be a seminal year for the housing market since there will be higher property sales owing to lower prices. This will eventually lead to the over-supply scenario being fixed as developers limit new launches and focus on completing and delivering unfinished projects. As a result, the rate of decline of property prices is already slowing and will slow down further throughout 2020.
Price declines in Dubai are expected to come down to 4% in 2020 and 1.3% in 2021 as per reports. This sharply contrasts with the drop of almost 10% in property values across the Emirate as observed in 2019. Experts are highly optimistic about the prospects of the real estate market in relation to the World Expo 2020 which will be hosted for 6 months by Dubai from October, 2020 onwards. However, experts have also opined that overall recovery of the real estate market will still be impacted by the surplus of current available properties for sale in the market. The biggest risk of any economic fluctuation still relates to fears of a widespread global economic slump and further decline in prices of oil.
However, affordability levels of residential real estate are still extremely high in the Emirate as per experts. Properties are quite cheap in Dubai at the moment and it is still clearly a buyer’s market. Experts have also stated that the realty sector in Dubai will witness prices hovering near the bottom-line while the stabilization period kicks in over the next 2-3 years. The softening of the real estate market came about after prices reached their peak levels in the year 2014 following the announcement relating to the 2020 World Expo. Studies have also shown that primary real estate zones like Dubai Marina and Downtown Dubai have witnessed further price declines although their performance continues to be higher than the average benchmark. Secondary Dubai locations like JVT, Motor City and JVC have seen higher price declines in the last year or so.