Right Time to Invest in Dubai Property...

The Dubai real estate market is always luring for the Indian investors and that is the reason that Indians are largest Non - GCC investor in Dubai. Even total Indian investment is larger than sum of second and third largest non GCC investors i.e. Britain and Pakistan.

Despite the fact that Dubai real estate market has not shown appreciations in last few years, Indians has continuously shown patronage. However now it seems that good days are nearby for such investors who either have invested in lean time or planning to invest soon.

Various property experts are unanimously agreed that the good time is nearby and they have some very solid reasons behind this opinion. Analysts are certain that Dubai residential house prices will rise next year. The lower and mid-market segment may see the recovery fast while prime segment may take a little more time.

JLL & Dubizzle and by Core Savills are forecasting that Dubai’s property market will recover much faster than the end of next year, which other agencies like Cluttons also agree.

All three brokers expect house prices and rents to rise at various points next year as

  • The emirate’s economy recovers and

  • Construction jobs are created to build Expo 2020 infrastructure

There are many more reasons like rise in crude oil prices will also support the economy of middle east region.

According to the report by property broker JLL and website dubizzle, average asking rents and sales prices in the city are 4 per cent lower than they were a year ago. However, during the third quarter they remained largely unchanged. This indicates that rental prices are now seen the bottom and will start increasing soon. The property price will follow the same pattern.

Trends in sales prices also support above opinion i.e. the market poised close to the bottom of its current cycle with no movement in Q3 2016.

Property broker Core Savills said that it had already seen an increase in sales prices in some of Dubai’s lower to mid-market, sub-markets. Also the prime segment indicates further room for price softening before marking an expected uptick in 2017.

Some Property portal said that more than half of its online property searches for rental homes were for homes advertised at Dh100,000 per year or less, yet properties within this range account for only a quarter of listings.

We recommend buying property having annual rent lower than AED100,000 which has high demand right now and there is no reason that property price for that segment will not increase.

The author is Chief Strategy Office of Digital SalesMen which is a globally prestigious Digital marketing agency for real estate industry.