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According to a new report by real estate consultancy ValuStrat, Dubai’s major premium housing areas are expected to show resilience to price increases, but rents will go down decrease. Read more to find out, where and why.
In the fourth quarter of 2017, the Price Index for residential property in Dubai generated by a reputable statistical and consulting agency ValuStrat went down for 5.8 percent, while Rental Index dropped 3.1 percent.
However, in year-on-year term, luxury real estate sector demonstrates a steady growth trend, which will probably continue in 2018. Moreover, prices for some premium housing units may reach their maximum next year, ValuStrat analysts say.
But the forecast on rental prices will cheer up Dubai’s tenants. In 2018, due to unraveled supply of a large number of overdue projects, the opportunities for buyers and tenants will get incomparably wider, according to ValuStrat. In the run up to the Expo 2020, Dubai is expecting completion of 63 new real estate projects (27 360 residential and commercial units). And this will inevitably lead to a decrease in rental prices in areas such as Dubai South, MBR City and others.
But rents for Greade A offices keep showing growth almost throughout all Dubai areas. Hospitality sector (especially serviced hotel apartments managed by large hospitality bands) is also expected to show great performance in terms of ROI increase. The average tourists’ stay at the UAE is said to increase with the opening of new landmarks and new city attractions increasing the yields from holiday homes rents.
According to the International Monetary Fund (IMF), the UAE's GDP is expected to grow by 3.4% in 2018, while the GDP of Dubai could increase by 3.5%. This year, UAE’s GDP growth was 1.3%, and Dubai’s GDP growth was 3.3%.
Get more details about property prices and rentals in different residential and commercial areas of Dubai using our always up-to-date .
If you want to lease or sell your Dubai property at the best possible price right now, please don’t hesitate to contact Oleg LAVRIK (BRN 5201) on:
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IMEX REAL ESTATE BROKER LLC UAE
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