What are your thoughts about the Dubai real estate market in the short, medium and long-term?

[totallyproperty]

The Dubai real estate market has been on something of a rollercoaster since the turn of the century. How you see the market performing in the short, medium and long-term and what will be the major influences?

 

[Angela Davis]

In the credentials of an eventful season of impressive industry efficiency and the Expo 2020 win, Dubai is coming into the new season with amazing useful feeling. The perspective for 2014 is very useful as residence costs are required to sustain their way up style, with more generates organized for the next 12 a few a few several weeks or so. Dubai's residence industry has been seeing a impressive development rate, which professionals believe will be effective even in 2014, and will proceed until 2020 at the least. Dubai obtained a further enhance due to the World Expo 2020 bid win - a meeting that will extensive variety 20 thousand visitors yearly and make 277,000 tasks.

 

[stephenshilstone]

I think rentals will continue to climb this year but not with the same yoy increase as the first half, and then top out near the end of the year. Sales will continue to slowly grow, all areas are showing slow growth, this should continue.
Long term everything centers around the expo win, a lot more accommodation, a lot more Hotels, Retail units in the new malls, but after Expo, who knows???

 

[Khairallah]

Markets are heading towards correction, before expo we feel markets will drop sharply and recover with sustainable growth.

 

[Prosper H.]

the market is taking a new dimention

 

[Khairallah]

UAE Real Estate legal mechanism is becoming mature, that will gain investor confidence. In couple of years from now, there will be investor friendly laws. Any Real Estate Market to attain sustainability requires strong investor protection under the legal system.

 

[Land Sterling]

Dubai Real Estate is getting better you just need to be supported by a good Real Estate who can give you the best advice and prices.

 

[JadenS91]

I think short term won't change too much. In the medium-term I think that the price of property will grow as the country deals with their oil shortage and in the long-term it will start to balance out when Dubai begins to become more stable economically once all the oil is gone

 

[azanali]

The government's decision to diversify from an oil-based economy, and to make Dubai the main hub of tourists in the world, has made and other developmental projects such as Dubailand, more

 

[aainakhan]

Market analysis over Dubai property

With reference to towards contributing to better standardize nations then charging rental arcade, the Real Estate Regulatory Agency (RERA) was instigated a couple of years ago to issue a three-monthly rental directory that registers the top and bottom of the average market value of a rental property based on size and location. The directory was up to date to regulate the huge rental intensifications that had been taking place in the previous years, and put a cap on them. Hence, things are coming up in your goodwill in the course of your track on Dubai properties for rent.



Thank you

 

[garima0312]

Dubai real estate market is seeing good phase, now if you talk about short, medium and long-term investment in Dubai, surely all have great return on investment. In Dubai, owners get a net rental revenue of about 5- 8% of the value of their property, additionally they can also enjoy high yield in terms of capital appreciation on the resale price. Beside, here investors are free of all the capital gain taxes, and the government permits complete ownership on freehold properties.

 

[azanali]

However, talking to experts at Dubai’s biggest property show, Cityscape Global, it appears that signs of overheating have now started waning.

 

[dzdxb]

Dubai property prices are currently flat and I predict a drop in the coming months with the new mortgage cap (25% deposit minimum, and if the property's worth more than AED5 millions then you will need 35% deposit).

 

[georgihh]

In a short to medium term I expect the prices to drop by 20%.
The expensive $ and the cheap petrol will drag the market down.
I hope it is not going to be another disaster as was 4 years ago.

 

[naktipanchal]

For some investors is medium and for some its long term investment. If you are looking to invest in dubai property and thinking to short term return its will only possible to new properties. For long term investment is like renting a property which give you long term return.

 

[shivanand]

Hi..

Hi all,
currently dubai real estate market is falling down due to high prices of properties.

According to current scenario of dubai market if you go for long term investment in real estate then it would good ROI after 2020.

Thank you.

 

[rooftopdubai]

Property or real esstate is on a real high in Dubai. Dubai is one of the business and entertainment hub of world. Thus in coming years too, this market is likely to go up.

 

[Amr Yussif]

It All Depends,

When speaking of short term I assume it means min. of 5 years. As in nowadays Dubai market, there's no big room for flipping anymore. Most of developers restrict flipping and 4% transfer fees makes everyone think twice before buying a (second hand -off plan property).
So I would break it down like this:
- As a short term : Rental yields will remain around 4-5% in most popular areas, 6-8% in eccentric areas like IMPZ or Dubai land. While sale prices will remain in the positive sides, in Dubai market, location matters to most End Users and this will keep the mature communities going while investors will start migrating to city border for higher yields.
- Med term: All over Dubai, all mature communities like DT, Emirates Living will start noticing of price drops as new supply floods the market late 2015 and 2016. End users will find more modern units for cheaper prices. Rentals in the mature communities will remain on growth, supported by corporate tenants( specially for small units ) while border areas will definitely rise supported by migration from expensive areas by non corporate tenants.
- Long Term ( 10 years): Market will face a correction movement again in Dubai based on qualifications of developers and demand of affordable accommodations. Considering Expo 2020 jobs supply, it will push a lot of demand in the market more towards affordable accommodation which will be around borders( Sport City, IMPZ, DIP, JVC).

Basically investment in Dubai now is kind of limited to off plan properties with fair payment plans. Investors tend more toward this direction as a guaranteed form of investment in selected projected either by location or quality.

hope this helps!

 

[DubaiBlue]

Agree with Amr. All good points. I think we are unlikely to see rapid capital appreciation as witnessed between 2007 - 2008 and 2012 - 2013.

 

[Saad Arif]

With market going through a correction process right now followed by a huge increase in prices not more than one a half year ago below is what i think about Dubai's Real Estate market.

Short Term: There isn't much excitement or hype and the market will keep moving at this steady pace while corrections are happening. Prices are coming down, sellers are available in the market but buyers are awaiting right moment. Things will remain like this for at least 8-12 more months.

Medium Term: Starting from mid of 2016 until 2020, i see a huge demand of occupancy arriving in the market and developers need to be ready to make sure they can supply as per demand. That will be a good time for investors to make money as more sellers will be easily available in the market.

Long Term: well it depends on the policies of Dubai Government that what they have planned in the pipeline. How market will shape up and behave after Expo 2020 is what I'm waiting to see.

 

[empireprestige]

Dubai is the hottest property market and we don't ignore it
There are few Reasons which makes Dubai a popular investment destination are
1. Most stable economy in the gulf
2. Wealthy population, no terrorism history, and no sectarian tensions.
3. Strong relations with the US.
4. TAX Free Income.
5. Visa eligibility process also linked with property investments.
6. High Rental value
7. Robust growth
8. Well regulated market.
9. Modern infrastructure, cosmopolitan environment.
10. Lesser property transaction cost
11. Strong Investor sentiments

 

[Manoj_Vyas]

Manoj_Vyas

Hi All, I am completely agreed with Amr. I think Dubai is better option for long term investment as per current scenario and one more thing is that we can get high ROI if invest in commercial property like office, retail spaces, etc...