Worst is over for Dubai real estate market
Dubai real estate sector looks set to stage a smart recovery this year due to speedy economic recovery, spending on infrastructure development, growth in trade and tourism sectors from the Abraham Accords, experts say.
Referring to latest data, real estate developers, executives and analysts said investors and end-users are expected to take advantage of property price correction by purchasing villas and apartments in the emirate. They said worst is over for Dubai property market as prices have touched the bottom and will start rebounding this year.
Industry experts said that it is the right time to invest in the property market while tenants should also be ready to pay more towards the end of the year. Property consultancy ValuStrat, which recently released its annual report, said apartment prices recorded year-on-year decrease of 14.3 per cent last year while villa rates dropped by 13 per cent. The report noted 18 per cent year-on-year decline in rents for apartments in 2020 but noticed a stability in villa segment as it fell by only one per cent.
Dubai Marina, Business Bay, Town Square, Jumeirah Village and International City remained most sought-after locations for buyers and end-users looking for ready properties. Investors, who believe in off-plan properties, found Jumeirah Village, Downtown Dubai, Dubai Creek Harbour, Business Bay and Sobha Hartland most popular areas for investment.
What will happen once pandemic is under control?
Subject to health crisis being resolved, the report said Dubai economy will grow by four per cent this year that will benefit the real estate sector.
“Economic recovery, Expo 2020 and 50-year anniversary of UAE will improve market sentiment this year. As developers put new projects on hold, rentscand capital values in established villa locations could stabilise and perhaps witness a gradual appreciation while apartments may follow the similar suite towards the end of 2021,” according to the report.
Haider Tuaima, head of real estate reserach at property consultancy ValuStrat, said the emirate’s real estate sector will remain a sought-after destination for investors this year.
“The worst is over for Dubai property market and prices will start rebounding this year. Citywide average prices for villas and apartments are expected to see an increase of up to three per cent and one per cent, respectively. Some areas may perform better or worse than others,” Tuaima told Khaleej Times on Saturday.