Natural market adjustments are leading to a surge in “affordable” housing in Dubai, according to data from Cityscape Global.
According to a statement from the organisers, end-users are set to capitalise on stabilisation within the Dubai real estate market as more affordable housing options enter the market ahead of Expo 2020, and price adjustments improve affordability of existing stock.
“We must understand that Dubai is experiencing a normal market correction which was always inevitable,” said Wouter Molman, director of Cityscape Group.
“The Expo 2020 win caused a sharp rise in property prices at the end of 2014, but the steps taken by the government have helped regulate the market and the establishment of a rent index has created more clarity for investors – all signs of a maturing market.”
The comments were echoed by Niall McLaughlin SVP, corporate communications for Damac Properties in the current issue of Construction Business News Middle East magazine
Craig Plumb, Head of Research at JLL MENA, said: “We expect transaction volumes and, subsequently sale prices, to drop further in the second half of the year. But the single digit price correction we saw in the first half of the year is a sharp contrast to declines we witnessed in 2008/2009 and is a clear indication that the market is maturing.”
Developers are lining up to unveil a wave of attractive new housing options during the 14th edition of Cityscape Global which brings together more than 300 exhibitors from 30 different countries at Dubai World Trade Centre next month.
“While a lot of the figures we are currently witnessing are not as positive as we’ve seen in previous years, it seems clear that the medium to long-term future for Dubai real estate is healthy,” said Molman.
