2016 was a fragmented year for the real estate industry in Dubai, with rental prices staying strong, but property sale prices lowering. Last year’s ups and downs were largely due to the slump in oil prices, and unsure US dollar. Although oil prices have stabilized since, the US dollar is still in for a rocky ride over the next six months or so, with no one sure on what President Trump will do for the country’s economy.
What does 2017 hold for the industry in Dubai? Will property prices continue to drop and will rental prices stay the same?
- More affordable housing
As property developers look to sell their units in an over-saturated market, purchasers will definitely see their money go further. With 20,000 properties set for release in 2017, the fine line between demand and supply will encourage developers to lower their prices in order to attract buyers, with many targeting overseas investors.
- Flexible payment plans
Following on from the above, more and more developers are introducing flexible payments plans for their properties, for example, a 40% down payment and 60% due on handover. This helps people who want to get on the property ladder, but cannot afford the high prices.
- Increased sales
Many property experts are expecting an upturn in the sales of properties across Dubai in 2017, believing that the year has to be stronger than the last. If the Dirham continues to be strong against the British Pound and Euro, then the amount of investors from that region may decrease, as their money is no longer worth as much. However, from other parts of the world, such as India and the further GCC, sales are expected to increase.
- Stable rental prices
Rental prices are not expected to dramatically higher or lower over the coming year, but will instead stay stable. This will be welcomed news for residents, and a more stable rental market will help boost the industry. The forecast of stable rents will also encourage investors who are interested in buy-to-let properties.