Be alert Dubai inhabitants! The prices of residential property are increasing these day, despite the price of oil reduced by 70% since last two years. The market fundamentals together with a prudent regulatory environment have managed to support the real estate sector.
Dubai has improved regulatory environment, wider investor portfolio, and of course increased maturity, are all showing that the real estate market in Dubai is ultimately self-correcting.
In the past, only a couple of localities on the borders of the emirate where non-nationals have permission to buy property. In the subsequent years, many freehold localities were added and the residential property prices are continued to rise.
Though prices started normalizing in 2011, and by 2013 they have again started to escalate. A number of measures are taking to regulate the Dubai real estate market. It is expected that the price will continue to increase but there are four key factors that are greatly contributing to keep Dubai real estate prices stable in near future.
A regulatory system in real estate has been a prime factor in stablizing prices. Several UAE laws support transparency and a better regulation environment.
Despite oil prices are falling, consumers and the corporate confidence have remained stable. Emirates are destined to hire people and expand their presence sound in the years to follow. The economy of UAE is not only dependent on oil. It is hence diversified. The country’s government has dipped in critical investments for infrastructure and other critical projects. Non-oil sectors continue to grow, providing a solid base for the UAE’s economy to grow.
There will be no job losses this time around. Rentals have held much better and are adding revenue to market on a regular basis. This results in a handsome return on investments for investors.
The Emirates will witness 25 million additional visitors on the occasion of the EXPO 2020. This will trigger the administration to build new infrastructure and thousands of hotel rooms. Expo 2020 will bring in a significant amount of jobs and will increase in demand.
Though, 2016 will be a challenge for most of the properties but 2017 will result in a huge uplift. What are the other changes that expo 2020 will bring in are:
1: Increase in liquidity as the market will continue to tighten.
2: As demand and supply are not currently balanced, there are certain areas that are more attractive than others with premium quality.
3: There is going to be a drive towards affordable housing and rental schemes. That will appeal to a more widely demographic.
4: Lastly expo 2020 will have a direct and indirect impact on the Real estate market. The horizon of the public and private sector will escalate.