Dubai’s residential market is expected to level out by the end of 2016, and recover sometime in 2017, according to the Inside View Dubai report from Knight Frank Middle East.
The real estate firm’s report said that the Dubai residential market is heading towards a “soft landing” this year – essentially claiming that residential prices won’t go much lower and will soon level out.
“While we have seen a slowdown in demand for residential property in Dubai over the past 18 months, the appetite remains healthy and is expected to rebound over the next couple of years as investors regain their confidence. The real estate market is more mature, and this resilience will drive the next growth cycle,” said Dana Salbak, Associate Partner and Head of Research at Knight Frank Middle East.
Indeed, the report said that the slowdown could largely be attributed to the volatility in the global oil price and negative investor sentiment. However, it added that with sale prices becoming more realistic and developers adopting a more mature approach to their project launches – phasing projects out and releasing them in line with demand – confidence is expected to return to the market.
“Dubai’s position as a leading financial hub and competitive tourist destination leaves it exposed and vulnerable to global events. Further volatility in oil prices, elections in the US and across states in the Eurozone, and on-going geopolitical tensions are likely to impact the behaviour of markets, currencies and investor sentiment. This in turn will reflect on the demand for property in Dubai,” said Salbak.
What does this mean if you’re looking to buy property in Dubai? Well, it could be time to make plans sooner rather than later. If Knight Frank’s predictions are right, property prices will soon be on their way up.
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