Prices of top properties of Dubai in coming years will synchronize with that of Hong Kong and London, a Dubai-based billionaire opines.
He says that he is still surprised why the prices of Dubai properties are lagging behind as compared to Hong Kong and London. As the population increases, prices also increase of the top ones. He also tells that the current time is the best to buy properties because the real estate market will pick up the pace from next year.
Summer and Ramadan didn’t affect the sales that much. The rentals have been stable. The real estate expects restoration and improvement from next year sales which will result into hike in the prices. This also will act as a recovery for current year. The demand from investors globally will be seen as they consider the emirates a safe investment option.
Emerging Market
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Dubai is right now at the position where the real estate market is at maturity stage and investors are genuinely interested to invest. Right now the prices are much more stable comparatively to 2007/08 and rentals have good returns on investment. In the coming 5 years, Dubai will be the hub of investment and people will be going to invest because of the strong real estate market.
Definite Restoration
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The Emirate residential market is going to experience a powerful recovery, according to the head of research at JLL Mena. Dubai market is very near to the bottom of its existing cycle.
Ever since the market touched the high during mid 2014, the prices as well as the rents have witnessed low of 10-15%, but the market is consisted relatively with less change in the rents and prices as per the records of 2nd quarter this year.
There are no other factors but most likely this sector of the market will start recovering from last quarter of 2016 or early 2017.
It is believed that the market is going to offer good long term chances for development and buying properties while bottom of the cycle is the best time for those considering it for long term.
Vital Factors for Restoration/ Recovery
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Diversification on a continual basis and openness of Dubai’s economy are the long term trends which will add up to the real estate performance. Increased level of investment from government in order to create a city so attractive that people want to live and work in it and improve the transparency in the real estate sector is also an encouraging trend to carry out in coming years.
More Space
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In 1 million dollar which is Dh 3.67 million, one can purchase 7 times more space in Dubai when compared to London and Monaco.
An investor can invest 155 square meters of prime property for $ 1 million than 17 square meters in Monaco, 21 sq. meters in London, 20 sq. meters in Hong Kong, 39, 41, 50, 79, 48 and 96 sq. meters in Singapore, Sydney, Paris, Moscow, Shanghai and Mumbai, respectively.
The rental yield is exceptional in Emirates when looked at global perspective ranging from 7-10% p.a. of the apartments as compared to 2-3% p.a. in other cities, globally.
For the expo of 2020, Dubai is the host which will last for 6 months starting from 20th October 2020 to 10th April 2021. Around Dh 25 billion investments are expected in infrastructure related projects building almost 277000 new jobs.
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