All eyes on Dubai rents
The UAE property market has been making waves internationally as Dubai hosts its property exhibition in London. Shedding light on some of the emirate's upcoming mega projects, the exhibition has been successful in attracting investor attention.
According to Sunil Jaiswal, a British property investor who is organising the show at Olympia, the emirate's tax-free status is one of the biggest attractions. Statistics by the Dubai Land Department showed there are around 19,000 Britons who have invested in property, spending around 1.6 billion GBP during 2014 alone. Britons are third on the list of top investors in the market, beaten only by Indians and Pakistanis.
Another factor that has investors watching the Dubai market is the assumption that rents are set to fall this year. Increased supply of apartments and villas in Dubai during 2015 could result in a softening of sales prices and rents, according to a new Asteco report. Its Dubai Property Review 2014 Highlights & 2015 Outlook report said a further 12,000 apartments and 2,000 villas are set to come to market this year. A more significant fall in rents could be seen from 2016 onwards as large numbers of real estate projects are completed, the report added.
Not only are prices set to fall this year, but the UAE stock market appears to be picking up from its slump. Property companies have been topping the list of gainers recently. In the past month, there has been a revival of oil price shares and a corresponding improvement in share prices across the markets.
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. With prices expected to fall, Dubai's property market has been attracting international investors, who have been waiting for any change in the current real estate situation. Most analysts agree that while the market will show signs of declining prices this year, major changes will be felt into 2016 as more and more projects are completed.