Dubai’s property prices have been rocky over the last few years, with a steady decline in high prices since the market peaked in 2014. But it’s set to stabilise next year before it starts growing again in 2017, said leading realty company Core Savills. In this article we will look at what the property market will look like in Dubai in 2016 and what it will have to offer those who are thinking about making a move.
Despite Emiratis seeing property prices fall over the last few months, Core Savills said that ‘it is optimistic on the outlook for the Dubai real estate market’, according to an article written by a staff writer for Arabian Business. They continued to explain that the market had peaked in October 2014 at higher levels than those achieved in August 2008, and since then the residential-sales prices have dropped by 1.2% per month for apartments and 0.7% for villas.
But what are the reasons behind these drops in price? In an article written by Issac John, the Associate Business Editor, for Khaleej Times explained, ‘the Core Savills report mentions several external factors such as regional instability issues, global macroeconomic concerns. In particular, a Chinese crackdown on capital outflows, Russian sanctions and the falling rubble, the appreciating dollar and overall Eurozone issues are mentioned as making their mark on Dubai’s residential market’.
These drops are welcomed with open arms as it is a ‘healthy and positive market adjustment after the strong growth in numbers posted in 2014’ and is seen as a sign that the real estate sector, thanks to investors, is maturing, putting them in a much better position than seven years ago.
So what does this all mean for buyers looking to enter the property market in Dubai? Core Savills have advised buyers to ‘focus on the right product prices at today’s market level and to expect reasonably higher rental yields with capital appreciation to follow in the mid-to-long-term’ the article for Khaleej Times explains.
It continued to say that the report has come about after looking into different segments of the real estate market and they aim to provide their clients with research-backed advice in order to help guide them in the right direction when they look to purchase property or when searching for an office to rent in Dubai.
Overall the property market is growing and Dubai is in a better position today to combat any external economic shocks than it was previously in 2008 explained Core Savills in an article for Arabian Business, meaning it’s a stronger and healthier market to invest in for the future.