There is a sentiment for decreasing oil prices and Dubai Real Estate market that it may affect the property prices. Let’s take a look at current analysis of the market from past six months.
Dubai real estate has remained stable from past six months despite the news of property bubble and other news that were prevailing in the market. According to our senior property consultant “Property prices are not going down. We keep hearing since six months that market may crash and prices may go down. According to the current scenario, market is stable and it is not going to crash because of the regulations made by Dubai Government and RERA. It is not 2008 that prices fell down overnight and we see another recession in property market. There is a little correction in prices because many landlords were trying to cash the Expo 2020 news.”
Our property watch and analysis results are also similar. We haven’t seen any reason for sellers to decrease the prices. The recent launch of Emaar properties was a huge success, which shows investor’s trust in the market.
According to Knight Frank, decreasing oil prices may affect the real estate in Dubai. However, there is no sign of decline in prices from past six months. Dubai Financial Market and Dubai Residential Market indices show direct relation with each other over the years. If the Dubai Financial Market index goes down, it affects the Dubai Residential Market Index. However, the recent ups and down hasn’t reflected on the property market.
Decreasing oil prices is a concern for many, but it is also good for some economies where they import oil. UAE market shows no sign of co-relation to oil prices because real estate market is booming. According to experts, if the downward trend in oil prices continues for few more months, it will start showing on overall economy and real estate market. However, oil prices may increase in coming months because of ever increasing demand. According to our experts, “it is a temporary sentiment and it does not going to prolong. Property flippers need something to spread rumors in the market to make profits.”
Should You Invest?
Real estate is one of the safest forms of investment because of ever increasing demand. If the prices are down, you have the opportunity to invest as it will go up in future. Similarly, Dubai real estate market is one the best investment opportunity for investors.
What do you think about Dubai real estate market? Add your comments below.
You can list your properties for sale or rent with us call now at 04 395 1212.