GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >> Real Estate and Retail

 
  Share
  • Mild correction over past three years contrasts with big gains in other markets popular with international investors, helping make Dubai a better-value option
  • Amount of money in circulation in the UAE at highest level in at least four years, cash-rich investors increasingly reluctant to leave their money idle
  • Brokers report swelling interest from potential buyers

DUBAI, June 27th:   Dubai's residential real estate sector appears to be bottoming out following a three-year price slump and with brokers reporting growing interest from potential investors, now could be the optimum time to buy, says Propertyfinder Group, the Middle East's leading real estate portal.

Dubai's slowdown contrasts with the overheated New York and Hong Kong property markets, which along with the emirate are among the most popular with international investors. That divergence has helped make Dubai a better-value prospect.

Dubai property prices have been falling since mid 2014 and are now at levels not seen since late 2012/ early 2013 back when Gangnam Style was top of the charts, Fifty Shades of Grey was the best seller and some of us still used a Blackberry. Dubai is far more complete, more regulated and far more mature city today. says Lukman Hajje, Propertyfinder Chief Commercial Officer.

In the 18 months from November 2015 to April 2017, median Dubai property sales prices fell 20%, exclusive Propertyfinder data shows, while median rental prices dropped 21% over the same period.

With a further 28,000 new units in Dubai scheduled for release by year-end, consultants JLL estimate, it might seem sensible to conclude Dubai prices will remain in the doldrums until 2018 at least.

But even were that to happen, the sustained slump has bolstered yields, protecting buy-to-let investors from a further downturn in the rental sector. The pace of declines in both rental and sales values has also slowed, Propertyfinder data shows.

“In the popular Springs community, it is now possible to achieve net yields of up to 6.5 per cent and net returns on equity of circa 10% for finance buyers using 75 per cent loan-to-value mortgage products,” says John Lyons, Head of Sales & Leasing at Espace Real Estate, a long-standing Propertyfinder client. “This provides great financial incentive to buy rather than rent.”

Other global markets struggle to offer such opportunities, with prices in New York's Manhattan and Brooklyn hitting all-time highs last year, Hong Kong prices gaining every month since the start of 2016 and London still steady and near record levels thanks to the falling pound.

According to cost-of-living website Numbeo, the per square metre sales price for an apartment in central Hong Kong is now around $25,090, versus $17,970 in an equivalent part of London and $11,955 in New York. That compares with $6,400 in Downtown Dubai as of March 2017, Propertyfinder data shows.

There are also signs that cash-rich UAE-based investors who have long sat on the sidelines no longer feel they can justify that stance and are readying to buy rather than allowing their savings to lie idle any longer.

The amount of money in circulation in the UAE in April reached its highest level since at least January 2013, data from the UAE Central Bank shows, and a significant chunk of this will likely be re-deployed to real estate.

The property sector also received a boost with confirmation that residential sales and leases would be exempt from the UAE's Value Added Tax (VAT), which is slated to be introduced in early 2018.

“Although I'm not blind to the risks of buying a property in Dubai, I'm more optimistic than I have been at any time during the last 3 years,” adds Espace's Lyons. “The inflationary risks of not buying should not be overlooked, particularly for anyone with a longer-term strategy in mind.”



Posted by : GoDubai Editorial Team
Viewed 13652 times
Posted on : Tuesday, June 27, 2017  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Dubai Land Department Honours its Strategic Partners
Next Story : From city of gold to family town: children take top priority for Dubai residents
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Season's Greetings 2018
Twelve Holiday Gifts for the Beauty-Obsessed Woman
The Smile Bar Opens Its First Store in the UAE
Purely Pandora Classics With a Twist
Festive Gifting Guide
New 1948 Seamaster Watches Join the Ranks
Tryano Launches Elemis
Add a festive sparkle to your eyes with Palladio Beauty
The Geo-Graham Orrery Tourbillon presents a galaxy you can reach out and wear Ge...
Amp up your skincare routine with The Organic Pharmacy's new corrective serums
Parmigiani Fleurier, new Friends of the Brand – ice-hockey superstar, Evgeniy Ma...
Hour Choice presents Coach Park Collection
Chloé Eyewear's Feminine Appeal Seen Through the Lens of the New “Rosie” Style
Certina DS PH200M collection
Joyalukkas brings joy to hundreds around the world with gold bar giveaway this f...
Tissot T-Race Marc Marquez
LACOSTE presents its new Legacy collection
Coca-Cola Puts Extra Fizz Into Its Factory Thanks to Digitisation
Oh So Heavenly! Bath Sets from Glambeaute.com that make a great gift this festi...
Sawalef Perfumes is now available at Mirdif City Centre
Introducing Nokia 3.1 Plus to the UAE
Introducing the GUESS Holiday 2018 Collection
The Custodian of the Two Holy Mosques King Salman bin Abdulaziz honored Huawei w...
Souq.com's Biggest Ever White Friday Sale
Zoho launches its cloud accounting software in Bahrain
The new BMW 8 Series Convertible.
The Ultimate Festive Guide For Little Ones
Puma Launches RS-X Toys
Department of Culture and Tourism – Abu Dhabi Organises ‘Herfaty' Programme in A...
Jameel Arts Centre, Dubai opens with an ambitious set of exhibitions and program...
Jaguar F-Type Rally Cars Celebrate 70 Years of Sports Car Heritage
Superhero Color Runners Prove We Are All Unstoppable!
Alstom delivers first Dubai metro trainset on time
Special Olympics Will Create a Legacy of Inclusion Through Art
Puma Drops Cali in New Colorway
Celebrate a Month-long Festive Feast at Swissôtel Al Ghurair
Kors Dubai: Michael Kors Celebrates A New Middle East Flagship Store and Specia...
Mademoiselle Longchamp
Audi Innovation Award Winner Announced at Dubai Design Week
Sheikh Mohammed Bin Rashid Al Maktoum Global Aviation Award
Epson's Saudi roadshow highlights environment friendly Inkjet printers in line w...
MDC Business Management Services Wins ‘Best Shared Services Initiative in UAE' Award
Roda Hotels and Resorts named front-runner and pioneer of the regions hospitalit...
Celebrated singer and songwriter Atif Aslam set to perform at BOLLYWOOD PARKS™ Dubai
HE Abdulla Ali Bin Zayed Al-Falasi officially opens HR Summit & Expo 2018
Turkish Airlines reached 83.4% Load Factor in October
The Central Bank's Higher Sharia Authority Discussed the Sharia Governance for t...
The IKEA Soft Toy Drawing Competition Is Back to Bring a Child's Dream Toy to Life!
Groundwork begins at historical Mina Al Sultan Qaboos
‘Successful Food Factories of the Future will be Driven by data' – Opening of Ag...