In a new survey by Emirates NBD market participants confirmed the theory with practice and drew out their own Q 2 balance, according to which the demand for Dubai rents increased significantly, while sales fell not as much as analysts expected.
Dubai real estate market global study conducted by Emirates NBD, the results of which were published by Markit, the financial and analytical portal, included a survey of Dubai leading brokers and property owners intending to put their homes up for sale in the near future. Interesting that, despite many other analysts’ reports’ findings, more than half of brokers noted a serious surge in rental market activity, and only 13% of respondents noticed a decline in tenants’ interest. In villas segment 41% of agents witnessed an increase in demand for rents, and only 18% reported a decline.
As for prices, the theoretical predictions are confirmed by practice: the majority of real estate agents expect rental prices in Dubai to fall over the next three months. And only those tenants who have to renew their lease agreements are looking forward with pessimism: 58% of them expect their rent to increase. That is basically justified by logical correction in prices for these objects up to the real market prices level.
And property owners are surprisingly more than optimistic about the future of their property in sales market: 66% of them expect their property value to increase, which is highly doubtful. In the sales segment all brokers noted a general decline in business activity in the market over the last three months. This is partly due to the traditional Ramadan lull in the market, but many brokers also noted less pronounced than usual investors’ willingness to take risks in this sense, and a slight decline in demand for Dubai property from foreign investors.