Is the Dubai real estate market deflating or collapsing?

[Nicholas Wallwork]

While the recent performance figures for Dubai real estate do not make impressive reading whichever way you look at them, there is some debate as to whether the Dubai real estate market is deflating or collapsing. A recent report by consultancy firm JLL confirmed what we already know, sales figures are down, prices fell a

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[nmb]

The Dubai real estate market has undergone a monumental change over the last 20 years or so. It is back in favour after the 2008 US mortgage crisis but now there are better regulations in place, more protection for investors and a greater confidence in the market. The general opinion seems to be that the market is reflecting worldwide economic concerns and consolidating at lower levels as opposed to collapsing.

While not yet considered to be a "mature" market there is no doubt that Dubai has moved on from the fledgeling market it was at the turn-of-the-century.

 

[sonamwsingh]

When we consider present time then gives conclusion that Dubai real estate market is not going much effective in some days, except these we can say that over all it is going good. The commercial real estate developers can take more interest in developing property as demand is increasing day by day.

 

[nmb]

Interesting to see plans in Dubai to utlise online benefits and cost savings:-

http://www.arabianbusiness.com/video/398299-video-how-dubai-is-taking-the-real-estate-business-online

 

[Atta Ur Rehman]

Yes I think this is because there is no sale of apartments instead there are lot of apartments for rent in dubai which is causing a draw back in the property market. There is also a chance that there are nowadays several real estate agencies in dubai that's the second reason.

 

[Longterminvestor]

It looks as though the Dubai property market might be going through a period of consolidation:-

https://www.arabianbusiness.com/property/408069-dubai-property-market-going-through-cycle-says-mohamed-alabbar

No rush to get in?

 

[Baqar]

I think the property market is different in the business bay after bay avenue because they have introduced a number of new dining places and a bunch of real estate options with some hotels and jogging areas and better restaurant options in the town,

 

[diyhelp]

It looks as though Indian investors have taken a liking to Dubai real estate:-

https://www.ndtv.com/indians-abroad/indians-biggest-foreign-investors-in-dubai-real-estate-report-1957846

 

[Longterminvestor]

It is sometimes difficult to get an angle on the Dubai real estate market. The general consensus seems to be that the market is softening but then we hear of large investments and strong deal numbers:-

https://www.arabianbusiness.com/property/410699-2019-prediction-greater-investment-in-property

 

[michael1978]

Is it really? I would love to know when properties will really go down in price.

 

[FWL]

What is your view on Dubai @michael1978 ?

Seems like things might be starting to firm again:-

Google News Dubai Real Estate

 

[michael1978]

@ FWL I know Dubai is not what it used to be anymore, all prices have gone up and from what I heard it is quite unstable market. How is it firming up again?

 

[Marinaki]

Is it really? I would love to know when properties will really go down in price.

Why? If properties prices are going down it means that everything goes down

 

[michael1978]

Why? If properties prices are going down it means that everything goes down

That's the point, it is very unstable, even if properties will go down in price, they will find something to get their money, UAE people are smart.

 

[Marinaki]

I agree!

 

[Sonalia]

As the Dubai economy continued to grow and the expat community followed suit it became obvious there was a significant shortfall in accommodation. This saw a massive investment in both traditional accommodation and office properties attracting some of the world’s best-known property companies.

 

[SergejPetrov]

Investors and buyers cashed in on lower property prices in Dubai as the number of transactions jumped 20 per cent to hit 11-year high of 41,988 in 2019 as compared to 34,961 transactions in the previous year.

 

[Hazel Ryan]

Real estate has been the best investment in Dubai. There's no doubt that every project and development is going to work.
It's also amazing how the digitalization process completed so fast in Dubai. This can actually work in the current crisis.

 

[Longterminvestor]

Everyone keeps saying the Dubai real estate market is somewhat removed from Covid-19 but from memory that is what they said about the 2008 crash until it finally wiped out the Dubai real estate sector and saw a near collapse in the banking system. Dangerous to assume any area/market will not be impacted - it is spreading across the world!