As the year comes to an end, the investment landscape in Dubai looks decidedly different with more sombre forecasts, says Sameer Lakhani, managing director, Global Capital Partners.
In a Gulf News report, he pointed out that while in the beginning of 2014, prices were going higher and higher, things are about to change. In most areas, prices have corrected by 10 to 20% and transactions have fallen by about 30% on a year-on-year basis.
"With job creation remaining robust in the local economy, housing demand is expected to remain strong. But perhaps for the first time since the advent of freehold, projects are being forced to cater to the median income resident, rather than the holiday home phenomenon for the upper-income segment."
According to him, there is now a 'new normal' in the investment landscape where the focus is soon to shift to cashflow yields rather than asset returns.