Study predicts stabilization of Dubai property market
A new study conducted in Dubai found that despite rumors of an impending "bubble burst" in the emirate's real estate market, rental prices will instead stabilize or perhaps drop somewhat.
Outright purchase prices in the real estate sector are expected to rise at 10 to 25 per cent per year, while rents will either remain steady or fall by up to 10 per cent, according to a survey by survey by DSL Exhibitions, reported Gulf News.
"For those advocating theories of 'bubble burst' in Dubai's property market, there is some bad news it has not happened, and perhaps never will," the report said.
Of the 351 local real estate brokerages, dealerships and consultants surveyed, nearly 4,000 properties were sold during the last 12 months, each with an average price of Dh2.5 million. Moreover, overall sales reached Dh15-20 billion according to the study.
The overwhelming majority of respondents said demand and sales volumes have not grown over the period in review. If they had, they had grown only marginally, indicating a possible cooling down of the market.
The study also found that individual owners who buy properties for personal use are beginning to dominate the Dubai property market.
"These figures bode for greater market stability as speculators exit the market and give way to actual users an indication that there is a distinct perception amongst investors that the days of instant windfalls in Dubai's property market are over," the report stated.
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