REAL ESTATE MARKET STATE UAE: recommendations from an expert

UAE real estate market shows steady growth. A few days ago it published a report saying that the number of real estate transactions and property purchases increased by 18% over the first quarter of 2016, compared to the same period last year. Developers complain about the fall of housing prices, but a number of transactions on this market are growing. It’s happening because of Dubai real estate market structure, which can be divided into two segments: the first part is for investors, who wants to buy business property, and the second part is intended for the end customer. While the media has an active discussion of the prices falling in the first market part, the second is characterized by a stable growth of the concluded contracts.

Commercial Real estate sector of the UAE is inherent in such a feature — attractive purchase prices for apartments at the same time with extremely high prices for rental housing. According to the report of Savills World Research company, the most Dubai real estate is bought as a shelter, compared with other large world centers. Experts estimated housing cost in cities like London, New York, Hong Kong, Paris, Mumbai, Singapore and Sydney. At the same time, they note that rental rates in Dubai are much higher than in other major cities. Thus, the rate of return on investment in real estate in Dubai is up 9%, and in areas such as Palm Jumeirah, Discovery Gardens, and Dubai Marina are often greater than 11%. Experts of the Savills company suggest that the present moment is favorable enough for the apartments purchase in the emirate — developers actively prepare the supply of affordable housing, while banks offer attractive conditions on a mortgage.

The best place to check most interesting offers of the Dubai market is the tenth session of «Abu Dhabi Cityscape» — it was held on April 12-14, 2016 at ADNEC (Abu Dhabi National Exhibition Center). The session included exhibitions, seminars, conferences about real estate market. «Abu Dhabi Cityscape» is an excellent indicator of any affairs stated in the UAE in real estate sphere. This event was attended by investors, developers and many government representatives. On 2016 year this exhibition even involved large companies like Eshraq, Tourism Development&Investment Company (TDIC), Bloom Properties,  Mubadala, SAPST, YID (Yas International Development), Masdar,  Garanti Koza, Wahat al Zaweya, Eagle Hills Properties, Manazel, Aldar Properties.

In general, analysts predict stability in the UAE real estate market. They note that the industry is maturing, there are more opportunities for investment in properties in UAE and segment of affordable housing for the ultimate buyers is still expanding.

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