According to a new report from Standard & Poor’s, those looking to buy property in Dubai will have plenty of time to take advantage of relatively low market prices.
The ratings agency’s latest report says that the “correction” in real estate prices that Dubai has seen over the last couple of years will continue until 2020 at the earliest. The reasons for the price downturn, S&P said, were to do with low oil prices, the introduction of VAT, and a glut in new housing units.
Naturally, this is good news for first-time investors, or property buyers with the capital to purchase a slew of new units. However, as has been the case with property prices, rental yields have also softened over the past couple of years, with landlords having to take extra precautions to attract and retain tenants.
Still, with home prices now 15% lower in mid-2017 than they were in 2014, new investors will certainly be interested in snapping up some property in Dubai. In fact, S&P estimates that prices for some residential units may have slid by up to 10% further since mid-2017.
As to when prices are expected to rebound, the S&P report said that 2020 would be the earliest that property prices pick up.
“We believe this correction will continue at least for this year and next, before prices stabilise in 2020 at the earliest,” the report said.
However, the ratings agency added that, when 2020 comes around, and Dubai hosts the World Expo, there may be a bounce back in terms of property prices.