DevDosh Ltd see the Dubai property market has gone through some distinct changes lately. The previously mostly investor led market has given way to a more homegrown and end user dominated market.
With the oil prices going through an uncertain and volatile period at present, and the strong dollar effecting currency exchange, many overseas investors are looking for more competitively priced properties elsewhere.
Investment from the Russian oligarchs which was very prominent right up until the middle of 2014 has now has slowed down to almost absolutely nothing. There was also considerable investment coming from investors in the UK though since Brexit many have decided bring their funds and investments back onto home soil.
The other main investors from the Middle East are playing a waiting game to see where oil prices are going to go so are also all but dormant in the market.
It is not panic stations quite just yet by any stretch of the imagination as there is continued investment coming from the likes of UAE, India, Saudi Arabia, Pakistan, Egypt and Iran.
There is also a huge rise in the number of first time buyer and people buying property for use as a second home. This increase can be put down to the fact that developers have come up with more agreeable payment plans and mortgage lenders with packages well suited to the first time buyer.
“We believe that a major portion of real estate buyers are end-users, particularly at a time when rental costs match or perhaps are less than mortgage re-payments,” says Haider Tuaima, research manager, ValuStrat.
In DevDosh Ltd opinion, this is the perfect time for any first time buyer to enter the Dubai property market because when the dollar weakens, which it will and oil prices return to more normal levels (with some experts expected it settle at $60 dollars a barrel) house prices are sure to rise significantly.
“In general, a weak dollar is positive for the UAE real estate market. Oil prices reaching above $60 a barrel are still some way to go. When it happens, the overall positive impact it will have on the economy of UAE and the wider GCC will benefit the UAE property market greatly,” says Sathya Srinivasan, head of strategic consulting and research at Cavendish Maxwell.
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