Dubai Property Investment Attracts Homebuyers in 2020!
Dubai Property Investment invites buyers drawn to the decreased rentals and home values this year! Several firms predicted the release of 50,000 units this year which most are attributed to spillover from the previous year. However, the price decline is expected to slow down this year pivoting Dubai’s economy and the real estate industry.
Uncertainties in Real Estate Market
This year will determine where Dubai’s property market stands: will the demand and supply find its balance again? Where is the real estate market heading when it comes to the price of rentals and home values? Why do experts think this is the perfect time for a Dubai property investment?
We’ve compiled the thoughts of experts to determine their stand on Dubai property investments:
Halting New Launches, Focusing on Ongoing Projects
Aditi Hariharan said that tangible measures were already taken regarding the oversupply. That includes forming the Higher Committee for Real Estate Planning and developers halting new launches. Instead, they are to focus on the under-construction projects. Hariharan is Cavendish Maxwell’s associate partner for strategic consulting and research.
According to Hariharan, he expects over 50,000 residential units to enter the market in the first half of 2020. These are the delays of 2019 projects that caused the prices to go down.
Hesitation vs Decision
Zhann Jochinke, COO of Property Monitor, said that buyers who hesitated on a Dubai property investment entered the market. They were on the fence about the potential risks but finally decided to go for it! He even added that the awaited Expo will indicate where we stand when it comes to demand and supply. People are expecting great things upon the eagerly awaited Expo this year!
Property Market Rising in 2020
The government’s new policies this 2020 and the upcoming Expo, experts are leaning on the upsides of the event.
Matthew Gregory, director of property at classified listings portal dubizzle, says that the Expo will benefit the property market. However, multiple factors will contribute to market growth. The effects of government policies come into effect in 2019, giving investors long-term visas. The investors were incentivized to boost their confidence.
Expo 2020, Draws Incoming Dubai Property Investment
CORE’s head of research and advisory, Prathyusha Gurrapu, says the market will continue to feel downward pressure increase. As Dubai becomes a global focus during Expo 2020, there’s still a cautious optimism in tourism and investment inflows. Other factors still play a role in the economy.
According to Gurrapu, landlords will be lenient to keep their properties occupied. The leasing incentives will also continue with longer contracts and rent-free periods. There will be an increased number of cheques coming price-sensitive tenants in the lower to mid-market.
The average year-on-year sales price decline was over 8% while the rental dropped over 9% last 2019. Expect 2020 to favor occupiers and meeting underlying demands as reflected in transaction volumes.
2020 Sets Real Estate Opportunities in Dubai Property Investment
Chris Hobden, Chestertons- Head of Strategic Consultancy, said that 2020 will be an exciting year for the local market. The huge event, Expo 2020 will become an excellent backdrop to showcase opportunities waiting in the UAE. Hobden adds that even with the residential property decline, certain locations will level off. Flexible spaces will increase for office occupants and co-living young professionals.
There will always be uncertainty in the flow of the real estate market. No matter the inflows, the highs, lows, there’s always a factor that makes it unpredictable. Dubai property investment may look unstable but the benefits outweigh the risks. Learn more about expanding your investment in Dubai by visiting our website!