By Staff writer
Knight Frank projects ‘more realistic’ market as sellers adjust expectations
Government spending ahead of the Expo 2020 event in Dubai will see confidence return to the local property market in next year, according to a recent report.
Real estate agent Knight Frank said that the city’s residential market was likely to see further softening throughout this year and into 2017, which it said was the sign of a more ‘realistic’ market as sellers adjusted their expectations.
Knight Frank also said that it projected a stronger performance in the high-end segment of the market, thanks to limited supply and strong demand from high net worth individuals.
“While it’s difficult to predict when the next growth cycle will be, we expect the residential market to level out by the end of 2016 before seeing gradual recovery in 2017,” the report stated.
“This is supported by continued government spending on infrastructure and facilities, in preparation for the Expo 2020. On a segment split, we expect prime residential properties to continue to outperform the market average in the short-to-medium term.”
The agency highlighted Mohammed Bin Rashid City and Dubai Creek Harbour as particularly popular areas for investors, alongside more established locations such as the Palm Jumeirah and Downtown.
However, the firm also warned that ongoing oil price volatility and the outcome of the US presidential election in November could also indirectly affect demand for property in the city.