Despite the protracted crisis, 14 thousand housing units were built in the emirate in eight months
Since the beginning of 2018, 47 major housing and construction projects have been completed in Dubai, totaling 14,000 housing units. 364 residential complexes were commissioned for 10,000 apartments (apartments), as well as 2,258 townhouses and 1,575 villas. Such data released by the Dubai Land Department (DLD).
Market indicators are encouraging, especially in light of the timely completion of projects. Property prices in the UAE in general, and in Dubai in particular, have been falling for several years. But the increased activity of foreign buyers suggests that investors see the bottom of the market. This means that if investor expectations are met, prices will stabilize and the risk level of investments in Dubai will decrease.
The maximum market downturn is the best time to buy. Of course, with optimistic prospects. Investors see such prospects. This is indirectly indicated by the fact that the share of foreigners among property buyers in the Emirates began to grow rapidly and is approaching 50%, writes International Investment.
The key to the revival of the market was the abolition of the ban on the purchase by foreign citizens of real estate in Dubai. Previously, such purchases were made only as a long-term lease. Liberalization of the real estate market revived it, and investors’ optimism is associated with the World Expo-2020 exhibition in Dubai, which is expected to be the starting point for a new upswing in the Dubai economy.
In the first eight months of 2018 alone, about 1,000 investors entered into approximately 900 home purchase transactions in Dubai. The total cost of transactions amounted to 12 billion dirhams ($ 3.24 billion). The price trend in Dubai is still falling, but in the wake of optimism, this only attracts additional attention of investors to the real estate market of the emirate, most of whom still wait and see to make sure that the Middle Eastern market has really hit the bottom.
Finally, in recent years, in Dubai, the volume of construction commencing has steadily declined. Only projects started before the economic crisis in the Middle East, when a construction boom was observed in the UAE, entered the market. Excessive supply with sharply falling demand and dumping of developers who were in a hurry to sell assets in order to free up at least part of the capital from the crisis market, rapidly reduced real estate prices. Now this factor is gradually fading away.