The World Expo 2020 may be four years away, but it is surely going to have an impact on Dubai real estate by creating a higher demand for residential housing in the city. For one, the Dubai real estate market is likely to continue to experience bourgeoning levels of stability and growth this year just like it did in 2015. We think this can be attributed to several key factors such as Dubai’s status as a top commercial and tourism hub, a rising local population, the maturing nature of the market, strong appeal among international investors and government funding of major infrastructure projects in time for Expo 2020. For residents and end users with stable income and plans of staying long-term in the Emirate, it is an ideal time to buy, as in some areas, rents may amount to be higher than the mortgage payments.
When foreign investors consider investing in Dubai real estate, they would surely look at what Dubai offers now and in the future. Given the Emirate’s solid plans of improving the overall living experience, with its huge ongoing investments in mega infrastructure projects and theme parks that are set to be ready in time for 2020, we believe Dubai’s appeal will only rise in the years to come. We at Better Homes think that these and other catalysts are likely to continue to sustain Dubai’s dominance of the Middle East’s real estate landscape this year and beyond.
Although Dubai real estate has been experiencing a temporary slowdown since late 2014, we do not see this posing serious concerns for those looking to live or invest in the Emirate’s property market. In fact, the dampening of prices is a healthy sign and a robust way for the market to correct itself and prevent overheating.
This mild dip in prices is also giving Dubai real estate time to absorb the current supply. At the end of the day, a property market that is table and less volatile is one that investors and developers would want to be a part of for the long haul to plan future projects in line with real-world demand. So, even if prices may dip further this year, a well-balanced supply-demand for Dubai real estate will eventually keep prices level and nurture a market that is mature, stable and on par with established real estate markets worldwide.