The organisers behind next week’s Cityscape Global in Dubai have released a survey suggesting most investors expect the UAE’s real estate market to grow over the next year, contrary to analysts’ expectations.
More than half of home buyers (54 percent) are positive about the continuing growth of the Dubai real estate market and 58 percent expect sales and rental prices to increase during the next 12 months, according to a survey conducted by YouGov and commissioned by Informa, organisers of Cityscape, where more than 100 UAE developers are expected to exhibit their projects.
YouGov’s head of real estate research, Lara Al Barazi, said the study highlighted “positive sentiment across the board”.
“Investors, potential home buyers as well as real estate professionals are expecting growth to continue in the Dubai real estate market in the coming year,” she said in a statement.
“The most positive news is the extent of trust investors place in the residential property market, which reveals the high potential this sector has and the importance of understanding what appeals most amongst prospective buyers.”
However, industry analysts including Jones Lang LaSalle and Cavendish and Maxwell expect prices to moderate during the remainder of 2015.
Rents and sales prices have been falling in most areas of Dubai so far this year.
Tasweek Real Estate Development said in its Q2 report that residential real estate prices in Dubai were up to 10 percent lower in the second quarter of 2015 compared to the same period last year.
During the same period, JLL said residential apartment sales fell 1 percent, while Cavendish and Maxwell recorded a 2 percent decline. Villa prices declined between 2-2.4 percent, the analysts said.
Earlier this month, Cityscape Group director Wouter Molman said recent price declines in Dubai's property market are part of a "normal correction which was always inevitable” and that medium to long-term prospects remained positive.
Molman said end-users were set to capitalise on stabilisation within the Dubai real estate market as more affordable housing options entered the market ahead of Expo 2020, and price adjustments improved affordability of existing stock.
"We must understand that Dubai is experiencing a normal market correction which was always inevitable," Molman said.
The YouGov survey, of 861 UAE residents, also found that location was a significant factor in determining where investors purchased their property.
Properties near public transportation are the most attractive and in demand (56 percent), followed by those close to grocery stores (44 percent), retail shopping malls (41 percent) and mosques (37 percent), the survey found.
It also said studios and one bedroom apartments were growing in popularity, with investors shifting their focus to smaller, more affordable residential options.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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