Dubai - Mubasher: The geopolitical situation in the region, along with the new residential legislation in Dubai had a considerable impact on UAE’s property market, Cluttons said in 'the Dubai Winter 2017 Property Market Outlook' report on Wednesday.
The instability in the region propelled investors to look for a safe haven for their investments, which presented the UAE as a reasonable solution, Cluttons added.
Furthermore, the proposed provision for affordable housing units in Dubai is a good step, the property consultancy firm remarked.
“Overall market conditions in the emirate have been relatively healthy. Going forward, we see regional developments and local legislation playing a big part in Dubai’s property market,” said Faisal Durrani, Head of Research at Cluttons.
Residential Market
Residential prices dropped 1.9% in the third quarter of 2017, while the annual rate of change during the three-month period ended 30 September reached -5.6%, Cluttons’ data showed.
Jumeirah Village’s performance was the weakest in the market, as villas recorded a 12.3% decline in average capital values to AED 833 per square foot (psf) from AED 950 psf in the year-ago period.
“These markets, in particular, have faced competition from surrounding developments that are newer, cheaper and often more affordable, especially for those looking for rental options,” Murray Strang, Head of Cluttons Dubai, commented.
Office Market
Cluttons’ report revealed that Dubai’s office market had not witnessed much change, as 13 submarkets had not reflect noticeable movement in headline upper limit rents during the last year.
Expo 2020 is still the main “upside risk” for UAE’s property market, which may see higher demand for office space in line with companies’ expansion, Strang concluded.
