Knight Frank consultancy’s presented its long-awaited report on the Dubai real estate market prospects in 2017. The forecast states that, perhaps, a softening period will last a little longer than many expected, but it also says that this way property prices just get closer to ‘reality’. However, a new surge of price increases is quite possible in the course of 2017, when the average housing cost would reach its 'bottom', Knight Frank experts presume.
“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.
Those, who bet on luxury property segment, will certainly make bank: premium class real estate, targeted mainly on HNWIs, is expected to be the flagship of the upcoming market recovery. Here, as everywhere, it is all about the high demand on the background of a limited supply, the report said.
On the other hand, strong government support to the emirate’s real estate market will also help to speed up its full recovery through large investments in major infrastructure developments.
“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,” said the report.
The report has also named premium and high-potential Dubai areas for real estate investments: they are new and promising projects of Mohammed Bin Rashid City and Dubai Creek Harbour, as well as well-developed Palm Jumeirah and Downtown.