Real estate is an incredible investment regardless of whether you’re looking to create a steady income stream or just looking for a home to live in. Although often regarded as a safe investment, real estate, however, depends entirely on the market situation. Knowing when to buy and when to sell can make all the difference, and we’re here to help you do just that.
Here’s what experts have to say about the current real estate market situation in Dubai.
S&P Global, a rating agency, has come out with its predictions for the real estate market in the biggest city in the United Arab Emirates, Dubai. The agency’s analyst, Sapna Jagtiani, addressed the media at a presentation at the Dubai International Financial Centre; according to her, the real estate market in Dubai would decline between 5 and 10 percent in 2019. This would bring property prices down to what they were before, in the aftermath of the global recession.
While they do expect prices to stabilize by 2020, they don’t expect a substantial increase in prices until 2022. They also believe that because the developers with a lot of resources are continuing to launch new projects, it will impact the market negatively – causing prices to decline further, by as much as 10-15% in 2019 and another 5-10% in 2020. It will take some time for the market to absorb the excess supply, delaying the recovery further.
Several factors, such as major product launches, changes to government regulations, foreign investment interest, and the increased economic activity due to Expo 2020 could cause the market to recover much faster than expected.
Factors that contribute to the decline of prices in the real estate market are Falling of oil prices, Oversupply, Mortgage Cap.
Property prices in Dubai are low right now. They are, however, expected to increase in the coming years with the government making development a priority. Therefore, if you’re looking to invest in real estate, in Dubai, this might be the right time to do so.