Where Does Dubai’s Property Market Stand Globally?
It is safe to say that Dubai’s property market has had a slow three years. After a 3-year slump, with average property prices dropping 21 percent from November 2015 to April 2017, analysts believe that the market has bottomed out.
Contributing heavily to the market’s position is the strength of the dollar. With the surge of the US dollar against currencies including the British Pound, the purchasing power of expats has been severely weakened. This has been reflected over the past few years with the slow market.
However, the state of the global property market must be taken into account. Being a city known for its glitz and glamour, property in Dubai has an incredible value when compared to other markets. A prime apartment in Dubai can be found for an average of $8,400 per square metre. This is a far cry from cities like London and New York, where prime apartments will set you back $35,000/sqm and $37,000/sqm respectively.
Coming in at 34th in the global ranking of property hotspots by New World Wealth, it is expected to rise even higher in future with the development that is taking place.
With the market being slow, this also means that developers are offering generous deals to ensure that properties are still moving hands. For example, some developers are offering a payment scheme of 20 percent on booking and 80 percent on handover to get presales off the ground. This means that potential bargains can be found if you look around, but don’t entirely base your decision on these benefits.
Instead, also consider its potential for growth. Projects can have a positive impact on surrounding properties, as seen with the Burj Khalifa. The improved infrastructure, retail and entertainment can act as a huge incentive for potential buyers. When investing, do plenty of research on areas that are primed for future growth.
Upcoming projects such as the Dubai Creek Harbour, Bluewaters Island, and Dubai Harbour are certainly developments to watch out for.