Dubai property market to stay buoyant in coming 12 months: new survey
Over half of respondents positive about Emirate’s real estate prices
By 24/7 News
Published Sunday, August 30, 2015
A new survey reveals that majority of UAE’s residents remain buoyant about the real estate market and expect growth in the next 12 months. (File)
Contrary to recent reports of rents and house prices falling in Dubai, a new survey by YouGov reveals that majority of UAE’s residents remain buoyant about the real estate market and expect growth in the next 12 months.
Almost 54 per cent of the respondents said they are feeling positive about the continuing growth of the Dubai real estate market and 58 per cent said they were expecting an increase in house sales and rents over the next year, the survey said.
It pointed out that location was a significant factor in determining where investors choose to purchase properties in the emirate.
Of the 861 UAE residents surveyed, 56 per cent favoured properties near public transportation followed by 44 per cent wanting grocery stores nearby, 41 per cent near retail shopping malls and 37 per cent close to mosques.
Conducted for Informa, organisers of Cityscape Global, the study revealed studios and one-bedroom apartments were growing in popularity in the UAE real estate market, with investors shifting their focus to smaller, affordable residential options.
In June this year, Standard & Poor’s (S&P) ratings agency said property prices in Dubai’s residential housing market are expected to fall by 10 to 20 per cent this year. Other international consultancies too have predicted prices to fall by 5 to 10 per cent, as transaction volumes have dropped significantly in the first two quarters.
However, in July this year, Dubai Land Department said the total number of real estate transactions rose 14 per cent to Dh129 billion from Dh113 billion in the same period last year.
YouGov’s Head of Real Estate Research, Lara Al Barazi said: “The study highlights positive sentiment across the board. Investors, potential home buyers as well as real estate professionals are expecting growth to continue in the Dubai real estate market in the coming year.”
More than 100 local developers will participate in Cityscape, a three-day event that opens on September 8 at Dubai World Trade Centre.