Property prices in Dubai shall continue decreasing in 2017 with a recovery only starting late next year, property consultancy Cluttons stated.
Home prices in the emirate dropped several. 4 percent on an twelve-monthly basis towards the end of the third quarter and will probably slip one other 5 percent next year, Today in Dubai Cluttons head of research Faisal Durrani stated in an interview. Prices had been falling seeing that 2014 and are also almost 28 percent less than their peak in the third quarter of 2008, he said. Prices shall only begin to stabilize in the last three months of next year, driven by government spending on projects related to Dubai’s hosting of the global world Expo in 2020.
Real estate sales in the emirate fell almost 30 percent by value in the first seven months of the year, according to data from the Dubai Land Department, as a slump in oil prices led to an economic slowdown in Gulf countries. Cluttons joins other real estate analysts forecasting either a flat market or further slowdown in 2017. Jesse Downs, managing director at consultant Phidar Advisory, predicts a 10 percent drop after a 7 percent slide this full year.
“Government spending on projects related to the Expo 2020 will help create jobs and stimulate demand, but the impact of that will not start to be felt for another six to nine months, ” Durrani said. “In the meantime, stubborn sellers at the top end of the market who had been holding out over the past 12 months are now facing reality. “