A new benchmark-setting H1 report, presented by a popular UAE web-portal Bayut, predicts Dubai real estate market a fast return to previous levels of growth.
The fears of many experts regarding too sharp house prices fall in Dubai and reduce in number of real estate transactions were too exaggerated. This opinion was expressed in a full H1 report made by experts of the analytical web-portal Bayut. In the first six months of the year, according to the report, prices in the sales segment decreased by 5% - 10%, and in the rental segment rates did even show a quite serious increase.
Despite the fact that now prices decline is still present, Bayut experts believe that situation will change in 2016, and prices will start to rise again. Dubai real estate market continues to adjust, to correct itself and to get rid of an unnecessary inflated prices and speculative extra charges load — the report says.
As for the size of the expected market replenishment with new property supply, Bayut has somewhat corrected a few too optimistic forecasts, and instead of the promised 25,000 new housing units promises Dubai only 15,000 new units, which could be added to the existing housing stock this year.
In the UAE capital Abu Dhabi, according to the report, real estate sector also proved to be more resilient to changes in the oil market, and kept a strong position of growth. Abu Dhabi Urban Planning Council approved 22 new real estate projects in the first three months of the year, denying all the rumors about the falling oil prices impact on the capital projects.