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14.12.2014
Prices of prime property in Dubai is forecast to fall by up to 10% during 2015 but growing interest from Indian buyers will cushion the declines, according to a new report by Knight Frank. Prices of prime property in Dubai is forecast to fall by up to 10% during 2015 but growing interest from Indian buyers will cushion the declines, according to a new report by Knight Frank.
Knight Frank’s Prime Global Cities Forecast said that luxury residential markets face a diverse range of challenges and opportunities in 2015, Arabian Business reported.
Of the eight cities included in its forecast, Dubai sits at the bottom but even here prime prices are only expected to slip by 5-10%.
It said limited supply and a growing appetite from Indian purchasers should cushion the market. It added the top risks to growth in 2015 include cooling measures introduced by the government, a slowing global economy and high inflation combined by low household income growth.
Knight Frank's report said: "At the end of 2013, the Dubai Land Department doubled the transfer fee to 4 percent and the UAE Central Bank introduced mortgage caps. As a result, a proportion of buyers face the prospect of much higher property purchase costs than they did 18 months ago.
"Largely because of this, buyer sentiment has weakened notably. In annual terms, residential transaction volumes saw a double digit decline in the six months to September. Also, in the third quarter of 2014 prime residential prices experienced their first quarterly fall (albeit of just 0.2 percent) in almost three years."
Knight Frank’s Prime Global Cities Forecast said that luxury residential markets face a diverse range of challenges and opportunities in 2015, Arabian Business reported.
Of the eight cities included in its forecast, Dubai sits at the bottom but even here prime prices are only expected to slip by 5-10%.
It said limited supply and a growing appetite from Indian purchasers should cushion the market. It added the top risks to growth in 2015 include cooling measures introduced by the government, a slowing global economy and high inflation combined by low household income growth.
Knight Frank's report said: "At the end of 2013, the Dubai Land Department doubled the transfer fee to 4 percent and the UAE Central Bank introduced mortgage caps. As a result, a proportion of buyers face the prospect of much higher property purchase costs than they did 18 months ago.
"Largely because of this, buyer sentiment has weakened notably. In annual terms, residential transaction volumes saw a double digit decline in the six months to September. Also, in the third quarter of 2014 prime residential prices experienced their first quarterly fall (albeit of just 0.2 percent) in almost three years."
