Upcoming Expo 2020 Stabilizing Dubai Homes for Sale


Dubai homes for sale prices is expected to resume growth sometime in 2018 after the ongoing market correction finally sets itself at a more stable phase. The second quarter value of Dubai residential properties saw a 1.5% drop from the first quarter of this year. Prices of villas dropped 2.2% and apartments at 1% with the real estate rental industry expected to finish the year at 10% lower compared to 2016. The number of vacancies are indeed rising across the city as real estate property rental owners are now experiencing the effects of the continuing downturn. Some are still reluctant on lowering the prices of rents and awaiting a rebound this year. Unfortunately, market predictions are showing signs that the expected upturn will not happen this year. The 15% to 20% overvalue of Dubai’s residential market industry is in need of market corrections to the point that adjustments made will lead to stability. Further predictions are pointing at 2018 when growth will resume and slowly progress onward. 

Why is there a downturn?

The downturn that happened affects not only the Dubai real estatefor rent properties but UAE’s very economy. The drop in oil prices caused widespread job cuts across all industry sectors. The effect severely caused the reduction of high-paying jobs that resulted to lower household incomes. Without a proper salary to pay off the rent, vacancies became rampant leading to the decrease of the rental market industry. Single-family homes or known locally as villas are affected the most by the downturn. Apartment values stayed the same because renters from villas are obviously transferring to the much cheaper rental prices offered by apartments. The downsizing of households also adds up to pressuring the market and requiring further corrections in the process.

The Expo 2020 Effect

The climbing vacancies of real estate houses as well as the prices trending downward is now slowing down and will halt by 2018. The economy is steadily recovering and job opportunities are once again on the rise. This is all thanks to the looming Expo 2020 which is also driving up tenant demand. Expo 2020 is long-anticipated world fair expected to attract 25 million tourists and visitors to the UAE. The steady influx of population will boost the economy and help in the stabilization of the whole real estate market. The process will be slow but growth is assured sometime in 2018 and improving further annually leading to the Expo 2020.

Looking for a Dubai-based real estate company that design and carry out a complete lifecycle approach to management and optimized ROI for property investments and assets? Zawaya Property is the perfect choice for you.


Tags: real estate houses, Dubai real estate for rent, Dubai homes for sale

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