Been meaning to invest in property for a while but not sure where? Well, with prices said to be bottoming, it seems now is the best time to buy in the Dubai.
Real estate advisory firm JLL have stated that Dubai property prices are dropping, with some reports even adding that if residents want to capitalise on the EXPO 2020, now is the best time to buy real estate.
According to the report by JLL, the rental index has indicated a 10 per cent and 11 per cent slump year-on-year for Dubai apartments and villas respectively in Q1 2016.
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Another report by real estate services company, Asteco revealed that the strong dollar and tightening liquidity were behind the challenge on the property sale market, with the off-plan market suffering the most, “particularly for product launches in secondary locations by third party developers.”
Property prices are dropping in the UAE
It seems the supply and demand of properties could be another factor, with over 2,200 residential units being added to the market.
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JLL’s head of research Craig Plumb said: “Various factors are bringing the market towards the bottom of its cycle. On one hand, the strong dollar is impacting the USD pegged GCC currencies which is making Dubai real estate more expensive for buyers from non-USD pegged markets. On the other hand, the continued period of low oil prices is tightening regional liquidity which is also affecting the real estate market.
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“We are witnessing a continuing decline in the sales and rental indexes for both the Dubai residential and hospitality sector,” he added. “Although occupancy rates are still considered high, but average rates continue to drop.”
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Farhad Azizi, CEO and vice-chairman of Azizi Developments is confident that investing in property now will pay dividends in the future whether you buy property to live in or to rent out. He said: “This is the best time to invest in long- and short-term serviced homes. The Dubai government plans to double the number of tourists from 10 million to 20 million over a period of 10 years. This opens up a host of investment opportunities, particularly in the hospitality sector.”
Images: Getty
