Market trends across the Middle East are changing: there will be a continued softening in the Dubai real estate market, according to a property consultancy.
The country has faced several phases of stability, including in the prime office market, however, all sectors of the Dubai real estate are due to face weaker opportunities for the remaining part of 2017.
A market view report showed that residential sales value in Dubai “have continued to show modest declines”, which certainly is a great indicator for the country’s economy and housing market more specifically.
The report also highlighted that this trend is expected to have the same consistency “albeit with further fragmentation, and just marginal single-digit declines anticipated”.
The fragmentation that is due to hit Dubai real estate market means that there could be some sense of unreliability and unpredictability looming, which isn’t great news for property investors and buyers in the housing market.
A key point that did stem from the market view report is that the rental market looks set to experience further deflationary pressures and the tenant-led market is set to broaden with bargaining power seemingly leading towards new tenants.
From this forecast, there will likely be an increase in rental discounts and rent-free periods for some particular secondary locations, which is good news for tenants interested in the renting property market, in Dubai.
Other spokespeople in the Dubai real estate field have commented on their housing market, the residential sales market, showing signs of improvement. It has been witnessed that improvements are on the up, there has been a surplus of transaction numbers during 2017, with off-plan properties remaining favourable among investors.
There is somewhat a projected nature in the local market, with off-plan properties being favourable. However, with all of Dubai’s natural beauty and modernised touches (that can be found all over the country), it has a lot to offer investors, buyers and sellers in the Dubai real estate market. Tourists are destined to continue visiting Dubai, which can only offer huge benefits ahead for investors in their real estate market.
Written by Gemma Smith