Until recently, the major market analysts refrained from any long-term forecasts for pricing in Dubai property market, limiting their prognoses to bare prices decline assertion. Moreover, most experts were trying to voice exact percent for prices decline in Dubai property market for the months ahead. However, any recession comes to an end, and now some analysts start to do more or less long-term forecasts.
Dubai real estate company Core Savills has recently introduced its own optimistic outlook for property market in Dubai. It says that current decline in prices is likely to end as early as 2016 and in 2017 prices may start increasing again.
Dubai housing market reached its peak in October 2014. Property prices touched its absolute maximum then since the sharp drop in 2008. And since October 2014 property market started stabilizing gradually. Prices didn’t crash this time, but started to decline by 1.2% per month on average for the apartment segment and by 0.7% per month on average for the villas segment.
Among the reasons that led to decline in house prices in Dubai, the report named strong external economic factors, such as overall regional instability, oil prices slump, sanctions against Russia, which limited Russian investors’ opportunities, US dollar strengthening and problems in Eurozone.
Anyway, all experts with no exception regard current prices decline as the overheated market "recovery", and consider it a phenomenon positive in every sense. However, in 2017, according to analysts, the take up trend may raise again thanks to Expo 2020 factor.