Dubai property prices: really up or still down? Which forecasts to trust?

26.07.2016
Reidin experts emphasize 1 per cent prices growth, while LuxHabitat reports a double in sales and JLL revises its prices revival forecast from the mid this year to the start of next year.

For two years Dubai homeowners haven’t heard good news of the housing prices growth in Dubai, but now the situation seems to finally changed and prices began to rise, though yet only by 1 per cent, Reidin experts report.

This is Reidin’s three months statistics to the end of June, while compared with May average house prices in Dubai increased by 0.33 per cent last month.

Big property brokers in the UAE, such as JLL and CBRE, usually base their property prices forecasts on Reidin’s data, as one of the UAE’s biggest and most authoritative source. But other companies said the uptick was false and advice not to rely on these data in your buying decisions.

So whom to trust? What decision should a potential property buyer make in this respect? Is it a right time to buy or should we wait a little? For JLL, being concerned with Brexit, said the real uptick in prices could possibly shift from the mid this year to the beginning of the next year.

Our estimate is that now is the right time to buy. This is what Sally Ann Ghai, a luxury sales broker at Luxhabitat thinks: "Recently, people seem to be more convinced that the next few months will be their optimum time to buy," she said.

"Over the past two years we have seen a high amount of window shopping, with buyers delaying to pull the trigger on a purchase because of uncertainty over the potential for even cheaper buys if they hang enough," she added.

Other companies, using their own statistics, such as MPM Properties, the property subsidiary of Abu Dhabi Islamic Bank, report that house prices in Dubai at least remain flat, if not increasing. Paul Maisfield, the chief executive of MPM Properties, confirms: "With the launch of so many new units in Q2, there is no shortage of choice for buyers in Dubai. But with more people seeking to get on to the property ladder to achieve long-term capital appreciation and relief from the vagaries of renting, the effect on prices is relatively neutral." This suggestion seems even more true-to-life at the background of average mortgage lending rates in Dubai going down and Dubai's mortgage lenders becoming significantly more generous as for housing loans.

How expatriates can get a credit for a house or apartment in Dubai, and what rates apply in this case, you can always find out from IMEX Real Estate Buyer's Guide. And if you still got questions, ask our consultants, who are always ready to help.

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