2019 is finally here and like most people, you might be interested in knowing how the real estate market may perform this year. If you are planning to live longer in Dubai, rent a property, or purchase any real estate in UAE, then you should get the outlook of real estate industry in Dubai.
Good News! Dubai’s real estate would most likely stay affordable, thanks to continuing increase in supply. At the close of 2018, the construction of newer land developments had continued leading to an increased number of choices for investors.
Consider this: in October 2018, almost 20,000 residential units, including villas and apartments in Dubai were completed. Not only that but before 2018 was over, an additional 15,000 units were made available in the market.
Now, that is just for 2018. In 2019, real estate experts estimate that over 30,000 residential units would be completed – a number that is much higher compared to 2018.
The areas where you will see the most residential project development include Town Square, areas near Arabian Ranches, Dubai Creek, Downtown Dubai, and Dubai Hills.
Competition is getting stiff among real estate developers, which is good for consumers. Because of the increased supply and more options for buyers and renters, sale prices have remained under pressure.
In fact, according to Chesterton consultancy, the average sales price of villas and apartments has dropped by 6 percent for the last few years.
Another reason that has contributed to the downward trend in sales prices and rent is higher home loan interest rates. For example, some buyers are reluctant to offer their villa for rent in Dubai as what they earn is not enough to cover their mortgage.
In spite of the decline in property prices in Dubai, the government has put forward new initiatives to improve the market’s outlook and elevate investors’ confidence. For example, the government will enact a new regulation that would encourage banks to provide more affordable interest rates as well as flexibility in their payment terms. This would help first-time property buyers and independent investors to enter the real estate market.
Now that you have a good idea of what to expect in 2019, it is important that you make informed decisions. You can always seek professional help and sound advice from experts. Thankfully, Rocky Real Estate is here for you. They have been dealing with Dubai properties since 1976. They have the right experience, knowledge, and expertise to guide you in making the right decision when it comes to property investments. Give them a call now!