'Speculators have been priced out'

12.02.2015
The remaining investors are purchasing based on sustainable, dividend-driven investment strategies, says Jesse Downs, managing director, Phidar Advisory.

Many foreign investors have been priced out of Dubai, especially speculators, according to a Gulf News report.

The remaining investors are purchasing based on sustainable, dividend-driven investment strategies, says Jesse Downs, managing director, Phidar Advisory.

As supply expansion puts downward pressure on residential rents, average rents will soften in most areas and, combined with upward pressure on yields, average residential sale prices should continue to decrease in the coming year.

However, this is not cause for panic, because the overall residential supply-demand is still near equilibrium. Softening rents will help correct the rampant rent inflation observed over the past two years, which, ultimately, improves affordability, controls labour costs and helps facilitate economic growth.

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