There is some good news for those planning to buy real estate in Dubai this year, and on the other hand there is some more good news for buyers. The weak dollar has also stirred optimism in the market and there has been an uptick in the hospitality and tourism industry with the number of guestrooms set to increase significantly.
2019 will see a drop in house prices according to the estimates of Steve Morgan, CEO of Savills Middle East. There may be a price drop of 5 to 10% in 2019, a further decline after the 6 yo 10% drop seen in 2018, according to Morgan.
The fall in prices will help to correct the affordability issue. While the decline will continue into 2019, property prices will start to rise again after bottoming out. Morgan also said that if investors buy at the right price, the yields are likely to be good; since prices may start to rise in the run upto the 2020 Expo.
Another reason why Morgan believes Dubai is a good place for investors to invest in property, is the fact that the Dubai real estate space continues to produce high quality products. The announcement of Palace Residences, a five-star waterfront branded residence development announced by Dubai Creek Harbour is one example of the high end real estate products that would interest investors. Apart from Dubai Creek Harbour, City Walk and La Mer are other great options for those looking for sound real estate investments.
The strong dollar was one of the reasons why the real estate market has presented affordability issues for investors from places such as India, China, Russia and even the UK. Now with the dollar weakening a little, the real estate space may see more investment inflows from non-dollar denominated markets. If the dollar continues to remain weak, overseas investors will find Dubai real estate more affordable.
Government initiatives such as the granting of long term visas, availability of payment plans for off plan properties and issuance of property visas for retired persons also help. This will boost investments and have a positive trickle down impact. If the government does more to bring down the cost of transactions, this will give a further fillip to the property market.
It is estimated that in view of the 2020 Expo, there will be a boom in the tourism and hospitality industry. The end of 2019 will see the number of guestrooms increase to 132,000, which will further increase to 164,000 by the time the expo starts. Tourism will also increase by about 5 o 6% during this coming year.
Property valuators and others will now have the benefit of a new app. With the help of this new app called TAQYIMEE, owners and owner representatives and can view and select approved third-party evaluators and request valuation of their properties. The application serves the objectives of the Real Estate Regulatory Authority and falls within the framework of the smart transformation of services provided by it for estate valuation services.
Do you have something interesting you would like to share? Write to us at [email protected]
