3 Indicators of Dubai Real Estate’s Emergence This 2017dubai real estate dubai real estate 2017 dubai real estate market 2017 expo 2020 real estate in dubai 2017
February 8, 2017
Dubai real estate has emerged from the challenges of today’s property market. This goes to show the maturity of the market through adjustments and safeguards done by the government. Real estate in Dubai should be very much positioned to take off this 2017.
2016 gave a reflection of an industry that is resilient and prepared for any cyclical downturn through strong performance of rental properties and good primary market sales. The positive growth of certain industries such as hospitality, healthcare, and education paved the way for Dubai’s real estate from the previous years.
Experts have reported the strong performance of the real estate industry this year, 2017, through 3 factors and these will be positive indicators of Dubai real estate’s growth.
Previously, we have written about the positive effect of the Expo 2020 to Dubai’s real estate. This still stands and this will provide a great factor in the positioning of the market. Expo 2020 is a world fair with varied themes to showcase achievements of nations. This is a great way to attract tourism and bring about businesses in Dubai. It is an avenue that will open up Dubai to the world and eventually create business globally. This will also stamp Dubai’s status as a central location in the world for global business and leisure.
The Expo 2020 will also affect the economy through the infrastructure spending in preparation for the event. This phenomenon of infrastructure building will give way to demand in housing as professionals will be flocking to the property market. This leads us to another indicator of Dubai property growth.
Increase in Jobs and Professionals
Infrastructure spending will open up the economy and also increase the market’s spending through the creation of jobs and influx of professionals. It also encourages tourism that will attract renters and property purchasers. The influx of professionals will fuel the demand for property in Dubai. Not only does the real estate industry take fruit in this activity but also the whole economy of Dubai. Wherein a healthy economy means a good real estate industry.
A healthy economy can be greatly achieved through the region’s main resource which is oil. This resource has been a great indicator of the United Arab Emirate’s economy as a whole which includes the real estate industry.
Stabilizing oil prices
Oil, which is the main economic driver of the region, has positive price trends last year and could be a major factor in the real estate industry’s resurgence. At the start of 2016, oil was selling for US$30 per barrel but did recover by the end of 2016 where it was sold at US$45 per barrel.
A booming oil industry will create more investment, employment and, thus, economic growth. Having all of this checked will fuel Dubai’s real estate industry that has seen some ups and downs in the last couple of years.
The resiliency and maturity of the real estate industry have brought itself to this turning point. Having all these indicators this year will bring about a positive sign for the real estate industry where property prices and sales will see stronger movements. The big question is how soon will the market pick-up this eagerly positive trend. Some analysts forecast the changes by the end of 2017 but some reports say it could even be earlier. The common idea around is that 2017 will be the year that Dubai’s Real Estate Market is poised for a renewed luster.