The city’s REIDIN sale price index shows growing stability, with government support initiating a new wave of investor confidence.
- Dubai’s property market remained stable in the 12 months to April 2016
- On a monthly basis prices remained relatively flat, while prime apartments saw average values rise by 2% in the first quarter of the year
- Increased regulation and investment infrastructure ahead of Expo 2020 is driving new investor sentiment for real estate in the city
Is Dubai property nearing the end of its period of correction?
The emirate’s real estate market maintained stability in the year to April 2016, according to the latest Knight Frank REIDIN sale price index. Despite price falls over the last 12 months, the index reports average values remained flat in April compared with one month previous.
Luxury real estate outperformed the market average as prices rose by 2% between the first quarter of the year and the fourth quarter of 2015, with prime apartments particularly showing strong levels of performance.
Knight Frank pointed to increased level of regulation in Dubai over the last few years that’s helping to drive new confidence among investors, along with the increased government spending in infrastructure ahead of Expo 2020.
The report says: “Looking ahead, the residential market in the UAE is expected to soften over the second half of the year. While it’s difficult to predict when the next growth cycle will be, we expect the residential market to level out by the end of 2016 before seeing gradual recovery in 2017.”
“We expect prime residential properties will continue to outperform the market average in the short to medium term.”
Expo 2020 will bring an estimated 25 million visitors to Dubai as the city brings the world event to the Middle East for the first time. 277,000 new jobs are expected to be created in Dubai’s private sector and, although it’s too early to assess the impact it’s having on the city’s real estate market currently, many property analysts in the city expect the Expo to drive prices up in key districts by as much as 50% in the coming years.