CBRE is predicting the start of a new growth curve for Dubai’s real estate sector in 2017, pointing to growing investor sentiment in recent quarters.
- Global real estate consultancy believes that Dubai’s residential property is showing the early signs of improvement that suggests the start of a new period of growth in 2017
- Average values have remained steady in recent quarters, while investor sentiment is beginning to rise once more
- Growth will continue further as Dubai prepares to host Expo 2020
More of the world’s leading property consultancies are continuing to predict the start of a new growth for Dubai’s property sector in 2017.
Last month Knight Frank stated that the market will begin to rebound over the next few years. Now CBRE has joined them in forecasting a return to growth starting next year.
With average prices steadying to a point where they have declined by less than 1% in recent quarters, CBRE believes this shows the rising investor appetite for real estate in the city.
The consultancy said that the sales market in Dubai will show the strongest signs of growth first before the rental market, not surprising when yields in the city are already healthy at 9% in some areas.
“There is likely to be a continued disconnect between the performance of the rental and sale markets, with the transactional segment likely to see a recovery first with a slight lag for the rental market,” CBRE explained.
Growth is anticipated as Dubai prepares to host Expo 2020, an event that will attract 25 million visitors to the emirate. Many new developments are expected to launch over the next three years as the demand to secure assets ahead of the event to maximise returns gathers pace.
Earlier this month (October 4th), Select Property Managing Director for the Middle East, Adam Price, told journalists in the city that “we’re about to see the next growth curve in Dubai” when explaining his company’s decision to launch Marquise Square ahead of Expo 2020.