Apart from being the main hub for oil and gold, Dubai is known for its tall structures with great architecture which is tourist attractions. Not only the commercial buildings but the residential properties are also very attractive.
In the past 2 years, there was huge supply in the residential properties but the demand was not as good as the supply. There were around 10,000-11,000 houses constructed in 2017. According to the recent report, the demand on the villas is high when compared to the apartments.
From 2015 the real estate market was going on an average scale. There was a drop in the rental prices too. There was a huge supply of the properties but the demand is being dropped by 20%. The prices on the rental properties have been dropped by 21%. Some experts suggest that the growth will start slowly. The changes will be seen towards the end of the 2018 and continue to hike in 2019.
Dubai Expo 2020 impacts on real estate sector
The UAE government has exempted real estate sector from the VAT list. Only commercial spaces exempting hospitals are to included in the VAT. The prices of the properties are reduced, which is definitely a perfect time to invest in the real estate market. In the next few months, there might be a good rise in the demand because of Dubai Expo 2020. Keeping Dubai Expo 2020 in mind, the property holders and builders are not letting the fall in demand impact the supply growth. Many of them suggest that after mid-2018 there would be a rise in the demand definitely.
The fall in the oil prices had its impact on the real estate demand. It is also dependent on the foreign currency values. Increase in employment opportunities will definitely help the real estate market to boost the demand, which certainly will increase the market prices. According to the advisors, Dubai Expo 2020 will increase the oil prices as well the real estate sector demand and will create huge job opportunities. Anyways the slash of rental prices helps the UAE residents financially, as house rent will be taking over 40% of the monthly earnings, the drop in the rental prices helps them in savings.
2017 was definitely a tough year for the Dubai’s real estate market but 2018 is going to be better with the hike in demand towards the end and continue the hike in 2019 as well. So financial advisor suggests that currently, it is preferable to invest in real estate market and experience a great value in near future.