Dubai Ripe for long-Term Investment

Buying signals are beginning to appear that indicate the Dubai property market is now ripe for long-term investment.

Although the real estate market in Dubai continues to be regarded as soft, signs are appearing that overseas property investors looking for long-term investment, 5-6 years or more, could find that the market is ripe to find bargains before prices begin to rise again.

There has been a lot of off-plan activity driven by aggressive pricing, good payment plans and so on.

Much of the activity has been driven by a rise in the affordable sector and that is rebalancing the market, which needed to happen. Many renters have recognised that the market is ripe for a deal that results in them paying less to purchase a property.

Many developers now expect the turnaround from the cyclical downturn in Dubai is about to happen.

According to the P.N.C. Menon, chairman of the Sobha Group, the cyclical nature of Dubai’s real estate market meant that before 2008, realty prices went to the peak. Then they came down by 50-60 per cent and bounced back from 2011-12 onwards to pre-2008 level. The upward cycle persisted till the first half of 2014 and started retreating. Since then prices have come down by 15-20 per cent.

He now believes that the market is ripe for investment, saying: ‘A cosmopolitan city that is home to over 200 nationalities, Dubai is like a magnet for all those who yearn for a quality of life in a safe environment. Housing requirements will continue to grow in tandem with the population surge, at least for the next 10 years.’

Joanne Phillips, general manager of the mortgage division at Holborn Assets, agrees. She said: ‘ There are some great deals to be had as sellers and developers are having to be more flexible. We think this will be the case for the rest of the year at least.’

She continued: ‘If you’re thinking of buying, and think you’ll be here for another five or six years, then now is the time do it – the market has never been more accessible.’