Dubai’s property sector is the most suitable price-wise, according to Anthony Taylor, ENBD REIT’s head of real estate. Read more about his 2019 projections concerning further market development.
Dubai’s real estate sector, in particular, and the whole industry in the UAE in general, have faced some serious challenges lately, however, this haven’t impact its attractiveness to foreign and local investors alike by any way, says Anthony Taylor, head of real estate at ENBD REIT (CEIC) Limited.
Speaking in a recent interview, Taylor said that when comparing the emirate to other global financial hubs, such as London and New York, Dubai’s property sector seems to be the most suitable price-wise. We at imexre.com have singled out some of the most important theses of this interview to mark the main development points Dubai property market is about to face in recent future. Here are some of them:
- The newly-issued royal decrees, whether for visa issuance systems or foreign ownership in companies or even price-control mechanisms, are likely to have a positive impact on the real estate sector. Remember that UAE’s government has recently provided long-term visas for property buyers and their family members in Dubai, as well as allowed a 100 per cent foreign ownership for companies owned by expats.
- The real estate, hospitality, and retail sectors are the most impacted due to an increase in supply, that led to lower house rents and a decline in sale prices. Sales prices across Dubai’s residential market declined by 1.4 per cent for villas/townhouses and 1.3 per cent for apartments during the third quarter of the year, while rentals declines by 1.3 per cent over the same period, according to Property Monitor.
- Investors, who can diversify their portfolios have a better position when facing prices decline risks. Including alternative and commercial properties into your investment portfolio, according to Taylor, will add more confidence about securing your future ROI.
- For the commercial properties, a mixed performance is expected, with a continued demand for high quality and distinguished locations, while commercial rentals and occupancy rates will fall further.
- Among the main characteristics and advantages of the Dubai real estate sector over the rest of the global markets, Taylor named population growth and regulatory reforms aiming at attracting investments. When compared with other financial hubs, like New York and London, Dubai’s properties are more reasonable when it comes to prices. Regardless of the market volatility, rental yields are more competitive than other parts in the world, he said.
- The changes in laws governing foreign ownership had the greatest effect on the real estate market in Dubai. It is also anticipated that new rules regarding foreign companies’ ownership, visas, and procedures for controlling rental rates would have positive impacts. These regulations will also help utilize the investment capabilities of expatriates.
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Note: ENBD REIT is a Shari'a compliant, real estate investment trust investing in income generating real estate, with a primary focus on the UAE. ENBD REIT is managed by the Emirates NBD Asset Management, an award winning asset manager in the UAE.