• The apartments sales and rental prices have continued to soften in the third quarter of 2020. This may increase business activity and the demand for property in the coming years. One of the biggest real estate developers, Damac Properties PJSC, believes that Dubai will still face a tough time throughout 2021 and 2022 due to the effects of the coronavirus, which drags down property prices. Oil is the primary export product of the UAE and the drop in oil prices has indeed affected the market negatively. This even pushed the government to create the so+called Higher Committee of Real Estate to manage the supply and demand. The Dubai real estate market has, therefore, grown by 260 per cent in the past 11 years in terms of the volume of transactions. Do you plan to buy property in Dubai? The market has been turbulent since mid-2013 and had some of its worst years from 2015 to 2016 when real estate prices declined significantly. • A total of 8,991 residential units were added to the market in the third quarter of 2020 bringing the total supply added in the year 2020 to 24,009 units. When it comes to locations, the three most popular areas in the first six months of 2018 were: During the first eight months of 2019, the most popular areas were: The latest news for the office sector are not promising either as the vacancy rates increased by 10% in the second and third quarter of 2018. Level of supply will mean Dubai property prices may not recover over the course of this year, according to experts. Required fields are marked *. (Reuters) Learn how Asian countries compare on foreign property ownership rules, taxes, visa options, capital controls and more. Prices are now down 30% over the past five years and where the chronic oversupply is much to blame for. While large developers like Emaar aims to curb the supply of new units, we will still see the launch of more than 50,000 units in 2021. / Marcus, How would you advise someone like me that has already bought a (hotel) apartment that is being rented out via a pool? Some claim that the decline of just -0.9% in the third quarter shows signs of improvement in the market. • In the third quarter we saw an inverse change in the apartment transactions in terms of volume as individuals are finding it easier to buy homes due to reduced prices. Thanks for this – it provides many useful points! Although the market is broadly stable, 2018 saw a marginal 4% decline in pricing. Dubai is the Middle East’s equivalent to Hong Kong and relies less on oil production compared to neighboring countries. Dubai Real Estate Market Report Q3 2020 The UAE economy started showing signs of recovery at the beginning of the third quarter of 2020. I have already lost £50,000 on its value and am wondering whether to simply cut my losses or hold on in the hope that the market has an upturn. This makes Dubai property more expensive for investors who come from China and Pakistan, for example. • The total residential real estate … Middle East Real Estate Predictions Dubai 2020. Dubai Real Estate has created a long-term health in terms of the availability of units in the market. The Dubai property market will continue its downward trajectory and prices will most likely fall until 2021 or 2022. Although off-plan transactions stayed relatively stable and only declined by 2%, it is the secondary market transactions that performed really well in the third quarter and increased by 141% when compared to the previous quarter. I’d advice you to ask this question in our Facebook group. Any sincere advice would be appreciated. He is currently a freelance consultant supporting Asiaimportal (HK) Limited with content creation and research. Copyright @ 2019 Reliant Surveyors All Rights Reserved. During 2018 both import and export trade volumes grew whilst rental rates for warehouses saw steady growth. In 2004-2006, this small city had 30,000 cranes, equal to 25% of all cranes in the world, which I believe is self-explanatory. Jumeirah Village Circle with 1,323 transactions, Dubai Creek Harbour with 1,214 transactions, In Q2 2018, there was a -5.5% decline in sales price for apartments and a 6.8% decline for villas, compared to 2017, In Q2 2018, there was a -7.9% decline in rents for apartments and an 11.2% decline for villas, In Q3 2018, there was a -7% decline in sales prices for apartments and an 8% decline for villas, In Q3 2018, there was a -10% decline in rents for apartments and a 9% decline for villas, Apartment prices fell by -16.5% when comparing Q3 2018 with Q3 2019, Villa/townhouse prices declined by -15% in the third quarter of 2019. Although Dubai’s real estate market has developed a positive outlook ahead of the Expo 2020, the onset of coronavirus has slowed down its growth. In 2019, the UAE government announced a 10-year residency visa for investors, as well as offering 100% foreign ownership of UAE-based companies. View photos, videos, virtual-tours & read project reviews. Going back to the start of the year, in January and February of 2020, Dubai’s property market saw month-on-month increases in real estate transactions following similar trends from H2 2019. Property Monitor offers information about the latest developments in the real estate market. Serving as Managing Director at PH Real Estate, Nick's property-centric career has spanned more than twenty years, Having previously managed capital transactions within London, Sydney and Dubai, he has developed an understanding of the nuances required to successfully negotiate and broker real estate within vastly differing market places and with a multitude of … In the past years, the Emirati dirham (AED) gained against major regional currencies and some international currencies, making it more expensive to buy real estate for investors from India, China, Pakistan, and the UK, for example. The 10-years residency visa is also valid for specialists like engineers, doctors, and top students. However, since we’ve seen a decreased interest and demand among wealthy investors, developers now focus more on affordable residential units. Your email address will not be published. The outbreak of Covid-19 is adding to the strain on Dubai's already weak real estate market. Marcus is a Swedish Engineer and previously worked as a Sales Manager within the Automotive industry in Shanghai. Thank you Wayn! Thanks. The Dubai property market outlook is what you should be referring to get a projected view for a successful investment in Dubai. Visit us to know the Dubai real estate statistics & property market trends, now. Many Buildings built half way and abandoned including offplan units not materialized. Budget and property type? Abu Dhabi Real Estate Market Report Q2 2020. Optional: Receive free information about projects in Vietnam, Optional: Receive free information about projects in Thailand, Dubai Real Estate Market Outlook in 2021: A Complete Overview. Agreed, it’s indeed oversupply vs demand. Predictions for Dubai Real Estate Market in 2021 | Real Estate The average residential prices in the first quarter of 2018 was also 7.2% less than that of in the 1st quarter of 2017, according to Savills. As mentioned, Dubai has suffered from an oversupply for years and the property market was put under pressure in 2020 due to the COVID-19 pandemic. The Dubai property market will most likely remain weak throughout 2021 as it will recover from the COVID-19 pandemic and still struggles with an oversupply. The second highest number of property sales transactions registered in Dubai since 2008 was in 2017 (40,649). From January to November that same year, the Indian- and Pakistani Rupee weakened by around -14% and -17% respectively against the Dirham, reducing the purchasing power among these nationalities. In 2017, the number of transactions during the same period was 52,170 with a total value of AED 204 billion. Areas like Downtown Dubai are worst affected by the oversupply. The main reasons behind the decline were; over-supply of properties, an inflated market, and a weak economy. This trend will continue through 2020. The market was then in a recovery mode from 2017 to 2018. face a tough time throughout 2021 and 2022, Dubai’s Property Market in Previous Years, Dubai’s Property Market in 2020 / The COVID-19 Pandemic. Worth mentioning is that Dubai’s economy is extremely vulnerable to external factors and the global economy as a whole, including the ongoing trade war between the US and China. This positive, upward momentum is expected to carry forward into the Dubai real estate market in 2020, creating many exciting opportunities for buyers and investors. The Dubai government opened up the city to tourists and flights started coming in since the first week of July. • The total residential real estate transactions increased by 50% in the third quarter of 2020 when compared to the previous quarter. Over the course of 2020, the trend of consolidation and a flight to quality is likely to continue across the UAE, driven by softer market conditions and regulatory changes, such as the 100% foreign ownership law and dual licencing. Your recommendation is to look elsewhere as there are plenty of better options around Asia. The market still faces other challenges that continue to exert downward pressure. According to a poll made by Reuters, the real estate market will continue to decline until 2022. With its progressive governance, conducive trade environment and massive global appeal, it has grown to become a favorite with buyers and investors alike. With all the years in the making, the Dubai real estate market now compares closely to leading real estate markets of the world. Compare 23,215 properties listed for sale in Dubai on the most popular real estate portal in the United Arab Emirates. In 2018, S&P Global Ratings informed that real estate prices will … The market also tumbled from 2014 to 2015. Read our Dubai real estate market overview for Q1 2019 to find out more. Dubai’s housing market remains “oversupplied” despite the drop in prices over the last few years, a new report by investment firm UBS Global Wealth Management has found. Fill in the form to get connected with a real estate agent in Vietnam, Malaysia, Thailand or other countries. The data for the first three quarters of 2018 were not promising. According to the latest 2020 Frank Knight report, the impact of the COVID pandemic across the GCC countries has caused some changes in their economic policies to support businesses and property investments this year. Prices have decreased by more than -30% in Dubai since 2014, which was triggered by the high supply. Dubai will most likely see modest price declines throughout 2021 and with the market bottoming out. According to ValuStrat, apartment prices fell by as much as -14.9% in Downtown Dubai in November, year-on-year. At the moment I’m writing this article, local Emiratis need to pay 20% in down payments, while the limit is set at 25% for expats and other foreigners. You can find many developers that now offer so-called multi-layer payment plans. Many investors have trusted this growing emirate which led to maturity in the real estate market. Disclaimer: We don’t offer any kind of insurance or compensation, due to losses caused by the agency, developer, banks, government or any other party that may be involved in the buying process. But the real estate market will most likely remain weak. Prices and rents didn’t fall as much these years compared to the previous years. On this report, you will identify the flow of property supply in the Dubai’s market. Even if oil contributes to only 5% of Dubai’s economy, it has a great impact on the economy as a whole. The Dubai government opened up the city to tourists and flights started coming in since the first week of July. Your email address will not be published. As expats make up 89% of Dubai’s population, the mortgage cap affected a big part of the consumer market. Take a look at the Dubai real estate market’s yearly overview. Should I sell now or hold on for a few years? We have provided valuable consultancy solutions to businesses of all shapes and sizes. The government also decided to widen the eligibility for its 10-years Golden Visa. You can request to become a member and then I will accept you. Read hundreds of articles and expert interviews covering Asia property taxes, foreign ownership rules, projects & much more. What are your preferences and goals? Our off-plan specialist Nima Safa writes about the most important trends he has noticed in Dubai’s real estate sector. The number of real estate transactions declined much compared to 2017. Established in 1977, Reliant Surveyors are a Loss Adjusting and Valuation Company. The quarterly decline of apartment sales prices has been 2.6% while for rentals it has been 4.5%. Dubai property transaction volumes in 2019 increased by 22 percent compared to 2018. Save my name, email, and website in this browser for the next time I comment. Indians and Pakistanis were the second and fourth biggest investors in Dubai respectively during the first nine months of 2018. Worth mentioning is also that saw a significant decline in real estate transactions during the first three quarters of 2018. For those who want to invest in Dubai property, my recommendation is to look elsewhere as there are plenty of better options around Asia for 2021. The estate agents have so far not provided me with the best advice . That’s a steep discount from Tel Aviv, where the price per square meter is $17,149. Many analysts working in Dubai’s real estate market claim that the mortgage cap is the biggest contributor to the price drop. After the mortgage cap was introduced in 2013, we saw an immediate decline in prices. Where in Asia? Nick Grassick. Looking at the first quarter of 2020, prices decreased by -3.5% compared to a year earlier. The UAE economy started showing signs of recovery at the beginning of the third quarter of 2020. Click here to get in touch with an experienced agent. Dubai flourishing economy has led to a leap in its real estate market. The government didn’t see any other way than to introduce a mortgage cap, to cool the strongly growing market. How will Dubai’s property market perform in 2021? For example, the average sales price decreased by around -5.6% in 2017 according to Savills, while the average rents fell by -7%. 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