Dubai Real Estate Set For a Slow and Steady Recovery Property Prices Expected to Rise in the Third Quarter of 2017

DUBAI

While the Dubai real estate market shows signs of gradually edging upwards this year, rents and property prices are likely to show signs of recovery during the second half of 2017 and onwards. There appears to be a general agreement suggesting that the city’s real estate is close to the end of its downward cycle and that though prime residential areas continue to lag in performance, apartment and villa rent and sales prices are unlikely to fall any further. Either way, the much-awaited increase in property prices will probably not materialise until later on in the year.

The average residential prices have diminished by 0.9 per cent with the annual rate of decline slowing from -8.8 per cent at the close of 2016 to -7.8 per cent at the end of March. In addition, residential transaction values and volumes in the first quarter have been positive partly due to the increase in incentives and payment plans created by developers.

Off-plan sales in Dubai increased by 45 per cent with a 4 per cent average rise in the number of transactions for ready properties and a 25 per cent increase in transactional activity during that period. Prime locations for off-plan apartment sales included Downtown Dubai, Lagoons, Dubailand and Dubai South. JLL’s Dubai Real Estate Market Overview Q1 2017 states that a further 28,000 units of apartments and townhouses are currently under construction and scheduled for delivery by the end of the year.

ABU DHABI

What holds true for Dubai will not for Abu Dhabi whose market cycle tends to follow Dubai’s at a lag of 12-18 months. Real Estate analysts have taken a more negative approach towards the Abu Dhabi market. Since there is a plausible further decline in rents, the reinstatement of a 5 percent rental cap is also unlikely to influence the market in the UAE capital. Additionally, amid continued cost cutting and corporate restructuring, sale prices are likely to descend.

Meanwhile, a 3 per cent housing fee on annual rent could increase cost pressures on households, in turn further aggravating demand for property. In tandem with the US Federal rate, mortgage rates are expected to rise. Apartment and villa rents in Abu Dhabi investment zones continued to decline at 0.5 per cent for apartments and 0.6 per cent for villas in the first quadrant of 2017. Declines were more pronounced among 2 bedrooms in Al Raha Beach and 4 bedroom villas in Al Raha Gardens. Weakened demand for larger units can be attributed to job insecurity, especially affecting senior executives.

9 thoughts on “Dubai Real Estate Set For a Slow and Steady Recovery Property Prices Expected to Rise in the Third Quarter of 2017

  1. Compared to all other major cities in the world, Dubai property prices remain low with lot of prospective in future growth.

    When an investment is made in property then it becomes the most reliable source of income, fluctuations in rent might occur but relatively has less influence. A sound investment in Dubai property promises a return of 8-10%. Prices tend to fall but it never falls into zero. Real estate always has a residual value.Real estate prevails to the great option as collateral security against loans, permits debt finance to be secured at best rates.

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  2. Making investments in the Real Estate market of Abu Dhabi should be delayed for at least a year. Satisfactory returns on property will not be gained anytime soon as the market is declining for Apartments and Villas. Analysts of the Real Estate Market have verified this.
    In the case of Dubai, it is the right time to invest in property as the downward cycle of the market has almost ended and the Real Estate market going upwards this year.
    Investments in the Real Estate market will always give positive returns no matter. Making the investments with the guidance of Al Masah Capital Ltd will further increase the chances of getting higher returns as well as assured profit. Al Masah Capital leads in the area of investments and fund raising institutions among a many other such institutions.

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  3. I am currently staying in Abu Dhabi. Recently invested in the Real Estate market of Abu Dhabi. A 2 Bedroom in Al Raha Beach. The people at Al Masah really helped me through it. Even though the market is running low in Abu Dhabi in the Real Estate sector, they helped me get good enough returns by helping me at every stage at the right time.
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  5. The Al Masah is leading leading fund raising & advising firm in the MENA region. It intends to attain this goal by offering customer centric products in private equity, real estate and asset management funds to a wide band of investors including institutional clients and family offices.They provide proper guidance & assistance to their customer-investors.

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  7. I am presently remaining in Abu Dhabi. As of this day, I’ve put much resources into the Real Estate market of Abu Dhabi. Despite the fact that the market is running flat in Abu Dhabi in the Real Estate area, Al Masha Capital helped me get sufficient returns by helping me at each phase at the opportune time.

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  8. Interests in some property in Abu Dhabi can win returns of more than 7 for every penny on your cash net (take a gander at net returns and not gross). Al Masha Capital will give you that sort of return. There is additionally the possibility to use your venture for expanded comes back from capital appreciation.

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  9. The two factors, Time and equity combined with a weak but notable nervousness to commit to more expensive purchases, are continuing to drive down villa values across the board. Over the past three years for instance, villa prices have fallen by close to 10 per cent so I will surely say, This can be very viable moment to invest in properties at Abu dhabi.

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