The last 3 months of 2014 were slow for the Dubai Property housing market, with villas and apartments suffering equally. Mortgage caps and an increase in transfer fees have not helped the situation. The falling price of oil has equally softened the Dubai Property market’s strength making potential buyers wary of where they spend and on what type of investment. With more and more additional units being distributed into an already slow market, normally aggressive Dubai property investors are slower to finalise deals that at one time would have been an easy decision. While the last quarter of 2014 has been highlighted as slow, the year itself did not see high numbers of sales activity which was challenging news for a Dubai property market that was expecting better results. This year has seen 25,000 new housing units released into the Dubai Property Market with residential building permits remaining unrestricted. This keeps the rental market in the decline as in some cases more units sit without tenants for longer periods. In spite of the state of the market this is a good time for end-users to buy as long as they have access to low-interest rate mortgages. This is good news for investors who can make smart investments at low priced Dubai properties and patiently wait for the return on investment.
Real estate in Dubai is still considered a solid investment in spite of the softening of the 2014 property market. The Dubai Land Department (DLD) continues to ensure its regulatory measures are developed to protect investors and clients alike. Real estate companies in Dubai are watching the falling price of oil which will affect potential client confidence whether investors or end users. Competition to reach fewer buyers and sellers and a high number of new properties on the market, with more on the way, make it a challenging time for real estate companies in Dubai. Landlords are becoming more realistic with the rental prices they charge to potential and existing tenants based on advice from real estate companies in Dubai doing their best to guide landlords accordingly in such a competitive market; while sellers are self-regulating more on their own choosing sale prices they believe are achievable based on what they believe they can get. A positive outlook for Dubai real estate companies looking ahead is that the soft market and client confidence will improve with the Dubai Government’s strong spend and active emphasis on diversifying its economy. Investment companies and their contractors see this market slowdown as temporary and have long-term confidence in the market giving real estate companies in Dubai something to feel positive about; there are ample substantial projects in play and planned by developers for the future.