Dubai real estate is known to be of a volatile nature. Despite that, is has always been a center of attention for the property buyers and sellers around the world. The fluctuation in prices during the past few years was greatly caused due to unstable demand and supply for Dubai properties.
Being a commercial hub and producing masterpieces in construction and development, Dubai stands among the top places in the world from an investment perspective.
This is also the reason for the emergence of hundreds of real estate companies in Dubai annually.
But does the sector have enough capacity to cater to these property dealers? Is the market mature enough? What is the future of real estate in Dubai?
ezEstate brings you the stats and property trends to answer the questions that are in minds of all the investors.
Oversupply in the past few years has brought the Dubai property price down. With that, borrowing limit, weak oil prices, and the strong dollar have softened the property market.
In response, we have seen notable efforts of the UAE government to strengthen the Dubai real estate sector.
The regulations include a 5-year visa, 100% business ownership to the expats, and various other initiatives to attract investments from all over the world.
The average property prices fell due to the oversupply in Downtown, which is the central hub of Dubai. On the contrary, areas like Emirates Hills, The Lakes, and Palm Jumeirah showed an immensely positive response from the buyers and renter.
The transport links, plenty of amenities, and high-class properties are the reasons for increased demands for these areas.
The investments in Dubai real estate sector
During previous years, more than 200 nationalities are seen actively investing in Dubai property market.
Recently, active Chinese investments have been witnessed which is majorly due to the policy that grants an on-arrival visa in Dubai to the Chinese nationals. As a result, the country now ranks 6th highest in the world for inbound property investments.
With that, the direct flights to 13 cities of China allow increased connectivity between the UAE and China.
Tourism in Dubai attracts more investments
Direct access to Dubai from 12 US cities is now possible. This will improve tourism in Dubai and will increase the chance of investments from US nationals.
Moreover, the government plans to invest 43% of its 2018 budget in public service, infrastructure and transportation, and to develop a knowledge-based economy.
The plans will boost tourism and provide a path for social and economic growth in Dubai.
The World Expo 2020
The World Expo 2020 is another factor that will trigger the growth and maturity of the Dubai real estate sector.
The director-general of the Dubai Land Department, Sultan Butti bin Mejren said;
“Analysts and experts predict an upsurge as we enter 2019 with unprecedented strength, as many strategic infrastructure projects are due to be completed in Dubai in preparation for Expo 2020.”
With the participation of more than 160 nations, the demand for apartments for rent in Dubai would increase exponentially. The property investors and the dealers can yield a significant profit by maintaining sensible Dubai property prices.
With the renting segment, properties for sale in Dubai might also receive a positive response and a sheer boost during and after the exhibition.
The CEO of the real estate firm Allsopp & Allsopp, Lewis Allsopp said;
“Dubai’s property market would continue to mature, with people changing from renting to buying, with hotspots in the Jumeirah and Dubai South communities ahead of Expo 2020 seeing particular growth”.
With such implementations, the government is continually taking steps to stimulate the Dubai economy. And the results are actually in favor of the real estate sector.
The market is moving towards maturity and the rental yields are growing high.
All these factors indicate that the market seems to be stronger and will become more profit yielding in the future.