If you want to buy a property in Dubai, then you shouldn’t procrastinate with your decision, JLL consultancy experts say. Given the current situation will stay at the emirate’s housing market for some months, there is every chance that prices may start increasing in the next 12 months.
In some parts of Dubai (mostly older, more densely populated and more popular areas), there is already a slight increase in prices detected: about 3-4% pa, whereas in areas, where prices are still slumping, the decline has slowed to 1-2% pa. Such indicators are already far enough from a rapid decline in prices witnesses throughout 2015 and 2016, when some locations registered a whopping 5-10% decline pa.
JLL attribute the slight improvement of the situation to the increased demand for ready-made real estate units in the secondary market, despite ever growing demand for off-plan schemes. The actual average level of in-time ‘materialization’ for the off-plan developments in Dubai is about 40% of the anticipated supply.
Dubai urban expansion plan involves 78,000 of new real estate facilities due to be completed in the next three years, though only 3,600 units of 25,000 expected supply were delivered in the first three months of 2017 in the emirate. 584 townhouses and 250 villas owners have received keys to their new homes in the Al Warsan Village community in the International City and in Al Furjan, respectively.Office real estate sector isn’t actually lagging behind. In Q2 2017, Dubai office properties stock swelled up with 355,000 more square feet of the office space. However, such an influx of new units to the market hasn't had much effect on prices yet. It's all about selectivity on behalf of the office tenants. Offices in the same-owned buildings with joint licenses offers within free zones are the most common kinds of search requests. Therefore, Dubai office occupancy rate remains at the same level of 86%, while office rentals in central business districts increased by 1.3% pa, and average now about AED 1.947 per square meter.