Samir Salya on the Potential Rise in Dubai Property

The price of prime residential property in Dubai is set to see a modest rise in 2018. Consultants Knight Frank predict a 1 per cent rise next year, with the upcoming Expo 2020 driving attention and a higher demand towards the region.

Expo 2020

Expo 2020 is a Universal Exposition, being hosted by Dubai. Set to act as an economic catalyst, the venture will see an influx of companies and investments into the region. Knight Frank states that the Expo is likely the reason behind this small rise. This event is leading to further government funding into the infrastructure and economy, attracting more employment and businesses to Dubai. In a released report, Murray Strang, Head of Cluttons Dubai, a real estate consultancy firm, states: “We expect it (Expo 2020) to drive up the rate of job creation and tenant demand.”

Leading up to the opening of the expo, the UAE are investing US$100 million in new constructions across the nation by the end of 2017, a 95 per cent increase from 2016. According to a report by commercial property and investments management company, JLL, around US$66 million of this is focused on Dubai based projects. The stabilization of oil prices and the government’s introduction of new tax regulations are also hoping to boost economic growth and revitalize property markets.

Speaking in the Cluttons report, Faisal Durrani, Head of Research at Cluttons, comments: “For the country’s real estate markets, this is expected to translate into widespread stability and marginal growth in some segments by the end of 2018.”

A shift in focus

A change in approach and style is contributing to this upturn in the Dubai property market. Until recently, the freehold real estate market was dominated by luxury segments and a substantially increasing assets value and rental process. This has shown signs of resulting in low to mid-income residents migrating away from Dubai, losing part of Dubai’s market.

Recent years have shown a greater focus on this income bracket, with a shift towards affordable housing. The significant increase in off-plan sales is shaping the country’s future growth. Figures released by Property Monitor’s Supply Tracker show 2,573 apartments are expected to be handed over to tenants in Town Square during 2018. With this shifting focus, Dubai is expecting to see a return of low to mid-income residents, who are presenting a good market and opportunity for investment.

About Samir Salya

Samir Salya is the Chairman of Reign Holdings and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing.