|
Steady demand to keep Dubai’s property market buoyant
until at least 2020
Dubai’s
prime residential market is expected to remain buoyant until
at least 2020, according to Core, UAE associate of Savills.
The “H1
Dubai Investment Outlook” report reveals the prime residential
market will benefit from limited availability in the few established
areas and the steady demand, aided by the growing pool of
regional and global investors looking to re-enter the bottoming
market.
Company CEO, David
Godchaux, says: “The relative resilience of prices in
most of the established ultra-prime areas is an interesting
aspect coming to the fore, underpinned by limited new supply
and continued demand from UHNWI investors wanting to own ultra-prime
properties in Dubai’s locations such as villas in Palm
Jumeirah and Emirates Hills, along with a few luxury apartments
in the Downtown and Marina districts and the new Jumeirah
freehold developments like City Walk.
“The trend
is stemmed by the long-term investment horizons and status
factors of a majority of owners of prime residential real
estate in Dubai – contrasting with the many investors-speculators
of pre-2008.”
A number of new
residential projects, driven by the “affordable housing”
theme have come to the market in the last few quarters, with
attractive yields appealing to investors and real estate funds
looking to diversify their real estate portfolio.
Godchaux adds:
“While we do not believe strongly in affordable housing
as a compelling investment in the long-term in Dubai in comparison
to other segments of the market, we still believe there are
good opportunities to seize given that most potential customers
in this segment are still unable to shift to ownership due
to current mortgage restrictions keeping the yields at artificially
high levels.”
[read
more property news]
|
