Property in 2018: Stability, Accessibility, Affordability

Property in 2018: Stability, Accessibility, Affordability

DUBAI 21 February 2018: This year is forecast to be a year of marginal growth in Dubai, with stability likely to bed in more widely across the city’s residential investment areas before the year is out.

However, values will end the year 4-5 per cent down on 2016, on average. 2018 is likely to see values showing their first positive – albeit weak – growth in over three years, as the Expo effect starts to influence demand levels and overall sentiment, according to Zaki Ameer, Founder, Dream Design Real Estate.

One of the trends for 2018 will be also be affordability. This trend already occurring by many of the current developers in locations such as JVC, Dubai South and Dubailand. Building smaller units will continue next year and guarantee the property’s affordability tag. Buyers or investors will now have to get used to smaller sized property units when choosing the ‘affordable’ option.

He predicted that accessibility will remain a key differentiator in the office sector. The experience of other global cities such as New York, London and Singapore emphasises that accessibility to the transport network is a key factor in determining the attraction of different sub markets.

“The same applies to Dubai, with the preferred office locations benefiting from access to the Metro network,” he said.

Connectivity is a key factor in the emergence of new commercial districts and will dictate the timing with which Dubai South will mature from its present focus as a middle-income residential market to a new commercial district, as envisaged in the newly announced plans for District 2020.

The road and metro links required to support this precinct are currently underway, and the continued expansion of Al Maktoum airport will further enhance the future attraction of District 2020 to office occupiers.

Ameer advised buying sooner rather than later. The general consensus is that the price cycle is now at the bottom. In the run-up to the Dubai Expo, industry expects prices will rise.

“We’re not saying the market will explode, but we anticipate positive movement, so the sooner the better. Go with what suits you. There is a lot of value in off-plan and established communities; each will have value added in the long term, and both have their advantages. Some people are so concerned with what is right and wrong that they forget to think about what works best for them. Think about your needs, your day-to-day life and what the community and location offers you. Do your research and speak with reputable brokers. There is a lot of choice in the market these days; speak to people who can listen to your needs and give you advice,” said Ameer.

Somewhere in between should be added that property prices have stabilised and increased from 2017 onwards, aided by Dubai’s thriving tourism sector and ongoing government investment schemes. Rental yields in Dubai can reach up to figures of around 8-10 per cent, especially in the apartment sector located around the Dubai Marina location. With property prices remaining stable but expected to rise closer to 2020, it’s worth considering an investment during the current climate.

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