It was observed that there is a continuing growth in Dubai’s residential market during the year 2017 compared to the recent years. The second quarter report on the Dubai residential market revels that the residential value in Dubai were down indicating decline in prices. However, annual reports revels that the Dubai residential market has witnessed signs of recovery compared to previous years. Despite a apparent negative outlook in Dubai’s residential market there was some degree of hopefulness among large developers such as Emaar Properties. This firm has announced residential projects such as apartments, malls, palm beach residences, villas and hotels in various places in Dubai. Majority of the new projects launched are hopeful with attractive sales plans and offers in the residential projects.
According to the study “Dubai Residential Market Outlook to 2022”, it was obvious that Dubai population are purchasing residential places and it is not stopping. Majority of the developers say that the real estate business continues until there are sales in residential projects with new innovations. Until Dubai’s economic conditions improve there may not be any signs of rise in prices in the residential projects. With the overall investors sentiment in the residential projects and the health of the Dubai’s economy may witness a lot of variation in sales over the coming years. Major event such as sudden increase in oil prices or equivalent positive or negative outlook in Dubai’s residential market will easily shift all the dynamics in this sector.
The number of sales and rentals of residential projects in Dubai are decreasing which is a positive sign indicating affordable average apartment prices until the end the year 2017. It was predicted that Dubai’s residential market may flatten out in its growth next year along with some expectations for Expo 2020. Value added tax may be a major factor affecting the development in the residential market in the coming years. Although the forecast for the residential market indicates that it will not be affected but there is a potential increase in inflation. With such forecasts in pipeline, developers will be able to claim rebate on construction costs during sales if sold after three years after completion.
The residential market in Dubai is a challenging market and convincing people to buy is difficult task. The new trends in the coming years might focus on providing residential property at affordable prices with developers understanding the market more skilfully to offer any schemes. Developers in Dubai are increasing emphasis on digital processes and sales. Multi-platform applications are launched to helps investors and developers track the progress of all real estate development projects. It was observed that there is a decline across all sectors but Dubai real estate market show an increasing stability.
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Ankur Gupta, Head Marketing & Communications