October Property Update Dubai 2019
I am pleased to share some positive reports that have been released over the last couple of days on the Dubai Property Market. As I previously predicted in past mailouts, I reported a potential market stabilisation by Q4 2021.
My main reason for this prediction is the slow down of supply and the rise in demand, significant price corrections, Developer incentive schemes and the new department of Strategic Land Committee at the Dubai Land Department.
Taking a look at the numbers of Residents is also encouraging, from my report in June 2019, the Dubai Statistics Centre website showed 2,833,079 residents, 18% growth from 2015. Just 4 months later this number has increased to 3,313,352 residents an incredible growth of 16.95% in a short period of time.
As mentioned above the reports from Savill's, Cavendish Maxwell and UBS Investment Office seem to have the same view and look at other angles, see below for more detail.
Savills' reported today in Arabian Business, “The residential market in the UAE has been slipping fairly consistently for the last three or four years,” Steven Morgan, the CEO of real estate advisor Savills said “It feels to me like we must be close to or at the bottom of, the market.” he went on further to say he does not believe there will be any significant price increases in the emirate over the next 12 to 18 months."
“However, it’s difficult to see that there will be significant further reductions despite the fact that there is a lot of stock coming onto the market,” he said.
The UAE market, he added, is also facing challenges caused by fierce competition and coming supply.
“Developers have payment plans, et cetera, that make the second-hand market quite difficult, because you can buy new stock and have a fairly long payment plan on that,” he said.
Additionally, Morgan said that Dubai needs “to work through the oversupply”.
“There is a lot of supply coming onto the market,” he added. “I see that the government are doing what they can to reduce more supply. We need to digest it.”
Morgan said that the current conditions – which he termed market “challenges” – mean that there are “great opportunities” for investors.
“There are good deals to be had,” he added
UBS Cheif Investment Office recorded that Dubai had the most 'fairly' valued property across the globe, please see the diagram below. They further went on to say today in The National Newspaper.
"After peaks in Dubai's housing market in 2008 and 2014, prices have fallen by almost 35 percent," Ali Janoudi, head Central and Eastern Europe, the Middle East and Africa at UBS Global Wealth Management, said.
"We expect prices to find a bottom soon but we would still encourage all investors to be diligent in their real estate research," he added.
In addition to the above Cavendish Maxwell have recently reported:
"The Dubai Land Department (DLD) announced a 134% increase in real estate transactions following the creation of the emirate’s new Higher Committee of Real Estate earlier this month on 2 September.
The committee was established by Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai with the aim to avoid the duplication of projects in the sector and achieve a more sustainable balance between supply and demand.
The committee is chaired by Sheikh Mohammed’s son and Deputy Ruler of Dubai, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, and includes representatives of top property developers in Dubai."
The above is extremely promising for the Dubai Property Market, any market there are risks but weighing up the data and increased positivity in the market.
If you are looking to buy, all signals are showing that now is the time.
If you would like more information on any of the data or information provided in this email or previous emails please do not hesitate to contact me by replying to this email.
Previous blogs can be found at www.lauravadams.com
data from Cavendish Maxwell, Arabian Business, The National, Dubai Statistic Centre, UBS Investment Office - compiled by Laura Adams