Three reasons why Dubai property market will likely rebound after two years
Expo 2020 is expected to boost the real estate sector in the Gulf city.
More than 5,454 villas and 25,595 apartments were sold in 2018 across Dubai's residential market Expo 2020 boost: Real estate investment management experts JLL expect the Dubai property market to hit bottom in 2021, with the city getting a lift from the World Expo 2020, which is expected to host 25 million visitors and new residents in the market, and state officials possibly taking steps to stabilise the market by reining in construction. The government owns developers Nakheel, Dubai Properties Group, and holds 29 percent of Emaar Properties. Record supply: Dubai’s homeowners will have to wait at least two more years for a long-running property slump to hit bottom as developers put a record number of new residences on the market in 2019. About 31,500 homes will probably be completed this year, more than twice the city’s average annual demand over the last five years, according to Craig Plumb, head of Middle East research at broker Jones Lang Lasalle. That compares with the 22,000 homes finished in 2018. Weaker demand: The Dubai property market’s long decline since a peak in October 2014 has defied all predictions of a rebound over the last several years. While an oil price slump, fiscal austerity in Saudi Arabia and a strong dollar have driven away potential buyers, construction (much of it by state controlled developers) hasn’t slowed to meet the weaker demand. Dubai’s residential values have slid about 25 percent from the 2014 peak, including a 10 percent drop last year.