Dubai-Mubasher: Britain’s vote to leave the European Union (EU) brought “slight uncertainty” into Dubai’s real estate market, though it is unlikely to have a significant long-term impact on the sector, according to a report by real estate advisory firm JLL.
Dubai caters to the most open property market within the region, thereby it is more susceptible to external factors.
British nationals are the third largest investors in the emirate's real estate sector, figures from the Dubai Land Department (DLD) showed.
“Even though it is too early to predict the long-term implications, overall there is a slight probability of British investors being negatively impacted by the devaluation of the British Pound following Britain’s decision to exit the EU,” Craig Plumb, head of research at JLL MENA, said.
“However, we believe the effect of the decision will have temporary repercussions as a substantial number of British investors who work and reside in the UAE avoid sourcing their income in sterling,” Plumb explained.
Plumb expected the emirate's residential market to “easily recover” in early 2017.
