- Market to return to growth in 2016-2017 as Dubai gears up to host EXPO 2020 – says price declines will be temporary
- Research shows market peaked in Oct. 2014, at levels higher than 2008 boom
- Prices in office sector to remain stable – with steady growth opportunities
Core Savills, a global real estate services provider, is optimistic on the outlook for the Dubai real estate market. Research released last week by the firm has suggested declining apartment and villas prices in the emirate since the market peaked late last year will stabilize during 2016 and return to growth later in the year or in 2017.
According to Core Savills, recent data suggests that Dubai’s real estate market peaked in October 2014 at levels higher than those achieved in August 2008, and that Dubai’s residential sales market has softened steadily by a compounded average of 1.2 per cent per month for apartments, and 0.7 per cent for villas since then.
The firm, however, expects a return to growth as Dubai gears up for EXPO 2020, and has welcomed the drop in prices as a healthy and positive market adjustment after the strong growth numbers which were posted in 2014.
In the report, buyers looking to enter the market are advised 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.
