Investing in Property in the UAE

PUBLICATIONS / Articles / 2018 / Investing in Property in the UAE
The current UAE property market is looking attractive for buyers in on a bargain. Housing prices in the city have been on a decline since 2014, with most analysts agreeing on a price stabilization ahead of the 2020 World Expo, with the accompanying influx of visitors and economic activity providing short-term stimulus to the local market. 

Real estate firm JLL predicts a further decline of the house market until 2019, before a rebound in 2020. Most analysts are unsure about the market conditions after the Expo, on whether the temporary boost to the prices will sustain momentum and signify a longer-term change.

Property ownership in the UAE, and Dubai specifically has been facing huge growth since the government opened the market to foreigners, with speculative developments and foreign investments, over the years, increasing exponentially, leading to the present state of oversupply and depressed prices.

The sagging oil prices also contributed to lackluster demand from neighboring oil-rich Gulf nations, the market's most active foreign demographics.

The unveiling of the new long-term visas and still-under-drafting (as of writing) 100% foreign ownership of businesses, form part of the Emirati government's goal to introduce change to the system to further appeal to foreigners, per Cavendish Maxwell, a property consulting firm, which also estimates for the return of growth in late 2019. Chestertons, another real estate firm, has a longer outlook on the return to price growth of the UAE property market, estimating it to be in 2023.

Developers have also worked in tandem with the government's policy to focus on the longer-term expat population that are looking to own and occupy, including schemes that reduce down payment requirements, and offering payment plans post-move in.

For a lower-risk opportunity, buyers are advised to explore options in areas that have shown some stability and with established infrastructure and flourishing communities, such as that of Dubai Marina, the Palm Jumeirah, and Downtown Dubai. Leading developers are also better suited for the peace of mind of buyers in terms of the stability and quality of the products being offered. 

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