Real Estate Market Report of Dubai
Dubai is like the equivalent of Hong Kong in the Middle East. The city doesn’t rely as much on oil production as compared to numerous neighboring countries. It has been a major attraction for foreign investors and has observed a significant amount of growth in past decades. It is important to understand the market situation of Dubai and the expectations in 2019 if you’re planning to buy real estate in Dubai. The real estate market of Dubai suffered through some of its worst years back in 2015 and 2016 as the prices declined a lot, thus ever since 2017, the market has switched to recovery mode. Still in those years the prices didn’t fall significantly. One of the major reasons behind the decline is the fact that the real estate market in Dubai has been one of the hottest in last 2 decades or so.
When we talk about 2018, the data is not as promising as one would expect. The real estate transactions declined in number when you compare it to 2017. The property market of Dubai is expected to remain weak and in recovery mode till 2020. This year the prices are expected to hit the bottom as predicted by many local experts. This will mainly be due to the fact that the supply will increase, while the demand will remain to be weak. Real estate prices are expected to further drop to 10-15% till 2020. Despite that, there are numerous positive signs that indicate rapid recovery and growth in the upcoming years. For example, the economy of the UAE is steadily stabilizing with the rise in oil prices. For now, the market is facing numerous challenges which pressurize it. Also, the introduction of 10-year residency visa for investors and specialists can increase the business activity and demand for property in upcoming years.