Property prices in Dubai will rebound in the coming months despite new properties being added to the market, according to industry experts.
Haider Tuaima, head or real estate research at ValuStrat, told Zawya that property prices in Dubai could see a rebound due to a possible end of a correction cycle and an emerging positive sentiment with regard to the real estate sector.
According to Asteco, a UAE-based real estate services company, around 39,000 new flats in residential towers and 10,600 units in villa communities are expected to be delivered this year.
Also, the construction of 90,000 properties is scheduled to be completed in Dubai this year.
Asteco further revealed that rental rates are expected to contract further and sale price declines are likely to ease in 2020, particularly for newly launched projects, as development costs are approaching the lowest practical level. Secondary property prices are, however, expected to record additional drops.
Property prices in Dubai have been falling since 2014. The fall is mainly due to oversupply in the market. Other reasons such as negative investor sentiment, low oil prices, and a strong US dollar also contributed to the drop in property prices.
UAE-based residential and commercial property developer Seven Tides has indicated that Dubai’s property market will recover in 2020. According to the developer, Expo 2020, government initiatives and favourable payment plans for developers will aid in the market’s recovery.
Dubai is gearing up to welcome around 14 million overseas visitors for Expo 2020. The event is expected to yield an investment windfall of $33.2 billion in this decade. During the same period, the event is expected to create around one million jobs and positively impact the overall property market.