BULLS VS BEARS | UAE Property Outlook
Is it time to worry about another housing slowdown in UAE? Will the
property market hit the brakes in 2016, or is it on the cusp of recovering?
Four of the region’s best property minds discuss the changing real estate
landscape to figure out what lies ahead for the UAE’s realty market
T
here is a tendency to associate the
rise in real estate values with bubble,
while the moderation in prices with
the property endgame. But is that always
the case? Not necessarily. Residential
sales in Dubai did record across-theboard declines last year, with villa sales
prices down year-on-year by 11% and
apartments by 8%, as per estimates by
real estate consultancy Asteco. In case
of Northern Emirates also, with the
exception of Fujairah and Ajman, rental
rates declined marginally last year, with
Sharjah and Ras Al Khaimah recording
2% falls each. Abu Dhabi however saw
a slow but overall positive market
performance in 2015, as
apartment rental
rates increased, on average, by 5%, with
prime projects achieving up to 10%
growth, and 3-4% growth for apartment
sales prices.
Wealth Monitor asked
market experts if 2016 is
time to buy or sell. The
experts debate on the
current state and the
outlook of the UAE
property market and
try to get insights into
the factors behind
why property prices
in many areas in
Dubai are in
downward spiral and the moderation is
faster than the rents? Are off-plan sales are
making a comeback again in Dubai? What
are the risks involved from an investor’s
perspective? Are they seeing investor
demand for luxury property in Dubai
waning and that of mid-level affordable
accommodation on the rise? What’s the
best option from the point of view of a
customer: buy or rent property in Dubai?
How real estate brokers are combatting
falling sales and the downturn in the
Dubai property market?
And here’s what they had to say….
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www.wealth-monitor.com | April 2016