According to market research and the latest data, the property prices in Dubai are estimated to drop 11.3 percent on average this year, but this descending of prices is expected to slow down in the coming year 2020. The real estate market will see a spike of five to seven percent as the demand rises. This scenario is predicted to happen as the market is opening the Expo 2020 mega event.
The reports released by Knight Frank also mentioned and predicted the same, that is the coming year would see a fall in the prices of only two percent compared to the fall of 3.7 percent this year. While overall property prices may continue to demonstrate south-side movement – despite slower than the current year – an analysis by Knight Frank explains the slower fall being attributed to rise in prices of prime properties by 0.2 percent in the Q3. According to Knight Frank, the numbers are low, as “the prime property prices in Dubai have shown a very small rise for the second consecutive year”. The consultancy also added that there are chances of demand in the prime property in Dubai the coming year, and the supply is simultaneously predicted to rise – keeping the prices in check.
Knight Frank in its report mentioned, “2020 marks a landmark year when it will host Expo 2020. Forecast to attract 25 million visitors, the city has seen significant investment in new infrastructure in the lead up to the event, such as the expansion of the metro line. These changes, along with the introduction of long-term visas of up to 10 years, will boost prime demand.”
The report also highlighted that the prime prices in Dubai in the last decade drooped to nearly eight percent when compared to Vancouver in Canada where the prices zoomed to 85 percent in the same duration. The consultancy also noted that Dubai was the only city that showed a slide in the prime prices, out of 14 cities that were analyzed since 2009.
Visioning the growth, evolvement, and maturity of the Dubai market, many established brands are looking to expand their business in the Emirates. Abdul Rauf Razzak, the managing director of Riviera Group, said that although returns have got down, still the developers could earn an average of eight percent. He analyzed and commented that the Dubai real estate market is drastically evolving, which is the prime reason that the brand is planning to incept its two new projects in the city in the coming year.
Visioning the growth, evolvement, and maturity of the Dubai market, many established brands are looking to expand their business in the Emirates. Abdul Rauf Razzak, the managing director of Riviera Group, said that although returns have got down, still the developers could earn an average of eight percent. He analyzed and commented that the Dubai real estate market is drastically evolving, which is the prime reason that the brand is planning to incept its two new projects in the city in the coming year.
contact us