UAE Property to Rise in 2018 says PropertyFinder Report

UAE property prices are expected to rise in 2018 according to the latest report from real estate group PropertyFinder.

After years of decline the real estate market in the United Arab Emirates could experience a turnaround over the next year in the lead up to Expo 2020.

The latest PropertyFinder ‘trends’ report found that apartment prices have fallen in most areas of Dubai, with Meadows down by 9.3 per cent, Dubai Land 8.2 per cent, Furjan 8.1 per cent and Jumeirah Islands by 7.1 per cent.

However, with Expo 2020 due in just two years, the market is set to recover.

Lukman Hajje, PropertyFinder Group chief commercial officer, said: ‘Popular sentiment is that prices are at, or very close to, the bottom of the cycle and will increase in the lead-up to Expo 2020.

‘There will also be an increase in product offerings in affordable emerging communities in the sub-one million AED, sub-one thousand AED per square foot segments, which were historically underserved during Dubai’s earlier construction booms.’

Real estate portal Reidin has found that population growth in Dubai is outpacing new property supply at a rate of two to one, meaning competition for property is likely to intensify.

Property investments were also found to still command healthy yields of six to eight percent in the UAE, suggesting that Dubai (and Abu Dhabi) remain attractive options for investors and landlords.

Oil prices have also rallied over the last four weeks, reaching a three-year high, producing more confidence in the UAE property market.

The PropertyFinder report also pointed out that property owners have largely avoided the brunt of changes in the UAE’s tax policy, and still do not have to pay taxes on capital gains, property appreciation, salaries or rental yields in the UAE.

Gulf Sotheby’s managing partner Kalpesh Sampat also contributed to the Propertyfinder trends report, saying: ‘With real estate prices declining significantly in the last 12 to 18 months, and with the lowest price per square foot across 10 major international cities, Gulf Sotheby’s is predicting that 2018 will see an uptick in the market, especially for the ready segment.’

There may still be bargains to be had for overseas property investors in the UAE before the lead up to Expo 2020 starts in earnest.