Property in Dubai and the real estate market have been in various news stories lately owing to the change in pricing and a decrease in sales. But despite the reports of various rental and purchasing prices dropping in Dubai, experts in the industry say that property in Dubai is on the increase and the real estate market can expect growth well into 2016. Let’s look at three reasons why this market is set to change and grow in the near future.
There is an Overall Positive Sentiment Regarding the Property Market
A recent survey conducted by YouGov revealed that 54% of the respondents are feeling extremely positive about the property market and see various growth opportunities for Dubai real estate. Despite the fact that sales dropped around 5-10% in the first half of the year, consumers are still on the lookout for residential homes to buy, taking factors such as location into consideration when looking at the current property market. Studies show that 1 bedroom apartments are the most popular at the moment, with investors looking at buying smaller apartments to add to their collection.
An Increase In Population Will Help The Property Market Surge
With a continuation of expats into the city, there will be a significant increase in the property market in months to come. According to a property website, more than 200 000 job permits were issued in the first three months of 2015, meaning that the population is likely to rise at the year continues. This number is predicted to increase as more internationals head to places like Dubai for work opportunities. This increase will change elements of the property market as more desire to buy will drive the market prices down. As we see an increase in rent prices, more people who are relocating to Dubai are looking to jump straight into the property buying market, instead of renting first for a few years and then making this big purchase decision.
Dubai Continues to Remain a Hub for Lifestyle and Business
It is not a secret that starting a business in Dubai is a great move for your company. Tax free trading and essentially designed for business upliftment, Dubai is a bustling business hub that sees expats arriving for extended periods of time to start up their own company. This appeal means more people will move to cities like Dubai which ultimately means more real estate purchases. Dubai is also known for its high quality of life. This means that the tourism industry is spiking, with a large amount of tourists visiting the city for pleasure. As we know, the property industry can spark interest for individuals who are just visiting.
Experts have predicted that a total of 28 500 residential units are to be completed by 2016. This in addition to the 26 000 built in the beginning of 2015 alone, means that there is going to be a supply and demand situation. Contrary to popular belief and the way the Dubai property market has been looking lately, there is definitely hope on the horizon as Dubai real estate is set to pick up where it left off last year and grow from strength to strength.