Tuesday 5 July 2022

Low Dubai property prices 'open new options for investors'

DUBAI, October 4, 2018

The lower prices of properties, driven down by supply in the lead up to Expo 2020, coupled with government incentives for investors and retirees, will open options to UAE real estate investors who seek to capitalise on a wide selection of units to grow their portfolio, an expert has said.

According to Cityscape Global’s data partner, Property Monitor, their index on the 12-month average price performance for apartments and townhouses sits at a 3.4 per cent decline, and the average sales prices for Q3 were Dh1.2 million ($326,650) and Dh1.9 million (517,196), respectively.

Market analyst Reidin suggests this decrease is due to a reduction in project launches by the developers and end-users focusing more with ready properties.

"Based on developer announcements and the current materialisation rate of 40 per cent, 11,500 units are expected to enter the market for the rest of 2018. As per developer launches, we are expecting more than 100,000 units in the next couple of years," remarked Shruti Jain from Reidin.

"As this trend of supply continues, we will witness a huge influx of supply towards the build up to Expo2020, meaning investors will be spoilt for choice," noted Jain.

"The market is moving towards being more value driven and what we opine is ‘price is king’. Investors are going to put their money where they get a distinct price advantage, regardless of the off-plan market," she added.

“Additionally, the five-year renewable residency visa that was announced for expatriate retirees could benefit the overall economy, particularly the real estate sector. The result of this, however, will only be visible after it has been implemented,” added Jain.

Providing clarity on challenges faced by investors, the new Cityscape Business Hub, which ran on the exhibition floor throughout the event, created a platform linking international and local decision makers across a wide selection of organisations involved in the real estate market.

Through exclusive sessions put on by experts at the Business Hub educated and informed guests on a number of topics that are pivotal in shaping the industry for developers, investors and professionals.

Dr An Naas Rawoo, an investment specialist for Smart Multi-Property Developments who attended the Business Hub believes Dubai’s strength lies with its continuous development and reactive change to accommodate international investors.

"I was thinking about Canada or Australia but the new law of 10 year residency and 100 per cent ownership made me think about Dubai seriously. As an investor, I feel the government is creating an environment for foreigners to feel safe and encouraged when buying a property," remarked Dr Rawoo.

"I predict we will see an influx of investors coming to Dubai because of Expo 2020 because of the government’s preparation, introduction of new laws, and the emirate’s unique location as a central hub for surrounding countries, we will see a thriving culture for investors," he added.

Highlighting the best of the UAE’s real estate industry, the Cityscape Awards for Emerging Markets announced its winners on Tuesday evening and saw top developers, architects and professionals come together to celebrate the best projects in the country, said the organisers.

The UAE secured itself as the leading country, picking up five of the 15 categories including the awards for best future commercial project, best built and future leisure and hospitality project, best future medium to high rise residential project and the affordable housing project.

Other countries to be honoured included Saudi Arabia, Turkey, China, Malaysia and the Maldives, it added.-TradeArabia News Service

Tags: Cityscape | investors | Dubai property prices |

More Construction & Real Estate Stories

calendarCalendar of Events