The real estate industry in the United Arab Emirates (UAE) has been experiencing a steady decline in the past few years. Stating reports by S&P Global Ratings, previous years’ property prices have been decreasing between 25%-33% up until the end of 2018. However, the future may not be as bleak as initially thought. Upon newer government policies by the Dubai Land Department (DLD) as well as stabilizing economic parity for the real estate industry being forecasted for the year 2020, Dubai has become a viable investment option again for domestic and foreign investors alike. This is especially true, for the city’s upcoming off-plan projects being developed for the next few years.
An oversupply of property developments from the limited demand in the local economy has led to shortcomings of the market price expectations. Nevertheless, the low price benchmarks being exercised now are highly attractive for new investors to start dipping their hands into the real estate industry. Off-plan projects such as Bayshore at Creek Beach by Emaar Properties offers lucrative potential returns upon its fixed market price now.
Located at the famous Dubai Creek Harbour, off-plan projects like these tend to provide subtle returns due to the influx of visitors and vacationers every year. In Dubai Creek Harbour itself, apartments in Emaar Beachfront have garnered a lot of interest among investors.
In addition to new off-plan projects being developed, interesting payment schemes are also being introduced by the local developers with the aim of promoting more investors towards Dubai’s soil.
Upon new government legislations, a more lenient approach is being exercised by local governments banks to allow more purchase of real estate assets to compensate for the oversupply in the market.
Furthermore, new residential and retirement visas are also being exercised to help facilitate the process of property purchases for the coming year. With all these advantages being implemented to promote the local real estate industry, it is high time for any potential investor to start looking into purchasing a property here in Dubai.
Dubai has yet to falter in regards to its pulling power for the tourism and other business sectors of its local economy. Nevertheless, upon the usual downturns of any economic slowdown, the real estate industry is bound to experience stability again, probably in the next few years. Thus, where will you find yourself, when the market starts to become lucrative again by the year 2020?