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Sat 27 Aug 2016 10:20 AM

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Dubai's double-digit property price rises 'gone forever'

Industry expert says market now more mature, set to see rebound in prices 'in next three to six months'

Dubai's double-digit property price rises 'gone forever'
DUBAI MARINA

The era of double digit property price increases in Dubai has gone for good and the market will be much more stable in the run up to Expo 2020, according to an industry expert.

David Godchaux, CEO of Dubai-based Core, UAE associate of Savills, predicted that Dubai's real estate sector will see a return to marginal price rises in the next three to six months.

In a video statement, he said the rebound is likely to continue until 2020 following two years of softening prices across the city.

Godchaux said he has a lot of clients who believe the market is reaching its low point, creating an "underlying demand" that is waiting to re-enter the market to "seize prices at the best possible time".

Despite the positive sentiment in Dubai, Godchaux admitted that the 10-20 percent prices rises seen in previous years would not be returning.

He said Dubai's property market is now more mature, has many more players, more transactions, creating a stabler environment for investors.

He added that more long term players will enter the market over the next few years rather than the speculators that dominated the market 5-10 years ago.

Godchaux also said that he did not believe that the upcoming Dubai Expo in 2020 would drive up property prices in the emirate by itself but would instead help to drive improvements in market sentiment, showcasing Dubai as a healthy economy and giving confidence to investors.

In June, Core said Dubai’s prime residential market is expected to remain buoyant until 2020.

Its H1 Dubai Investment Outlook report revealed that the prime residential market will benefit from limited availability in the few established areas and the steady demand, aided by the growing pool of regional and global investors looking to re-enter the bottoming market.

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Buy now and sell for less in ten years time 3 years ago

Things get a bit confusing for me and Dubai property. We invested in the 2005-2008 boom. We were very much welcomed to do so. Then (end of 2008) the prices collapsed. It was a nightmare- really. No comment came on that, and certainly no help. Some years later prices began to rise again. Not by enough, but small mercies. Now we find ourselves pitched as 'greedy landlords' or 'over pricers' and told that prices must be kept low for the good of Dubai.

As prices are well below 2007-2008 levels in most cases- it seems a bit mean. Next time I'll gladly come in on a low price strategy if you could let me know in advance. Also what is the investment pitch?