Many investors however, will be worried by the price fall and may wish to sell their properties at a low price to exit the investment. Others will see this as an opportunity to get a good deal.
Dubai, UAE (PRWEB UK) 31 October 2014
Since 2003, Openshore have been monitoring the average price of investment properties (Studio and 1-bed apartment) to produce the Dubai Property Index. In the index (shown in the chart below) the pricing in 2003 is shown as 100 and all the prices are shown as relative to this. Red dots are actual. Yellow dots are future forecast.
Dubai remains the most favoured place in the Middle East for investment property purchase by buyers from all over the world due to its desired location, high rental yields, and tax free status.
After the Crash of 2008, property prices in Dubai remained low for several years before increasing rapidly in late 2012 and 2013. This effect has been seen in the Prime Areas (seaside areas in Dubai such as the Palm, Dubai Marina and developments along Shiekh Zayed Road and the current Metro Line such as Jumeirah Lakes Towers, Business Bay and Burj Khalifa area) as well as non-prime areas (developments away from the sea and particularly along Emirates Road, stretching from the current Dubai Airport to the New Airport and including areas such as International City, Dubai Silicon Oasisi, Sports City, Jumeirah Village and IMPZ).
This second Dubai boom, has been fuelled by increasing population and shortage of ready properties. However, many analysts believe that prices overshot expected levels due to speculation following the Euphoria of the Expo 2020 win by Dubai in the second half of 2013. Now, the drop in prices is seen as a correction of this “overshoot”.
Craig Hamill senior Consultant at Openshore Property explained “We, like many other analysts believe that prices grew too fast in 2013 and this fall in 2014 is a correction relating to this. The fall is likely to be short-lived as Dubai economy is booming, tourism is increasing, population is growing and we expect property prices to continue to grow at steady rate after 2014.”
He added “Many investors however, will be worried by the price fall and may wish to sell their properties at a low price to exit the investment. Others will see this as an opportunity to get a good deal. We expect transactions (which have fallen significantly in 2014) to increase again in early 2015.
About Openshore Property Openshore Property is a UK company that helps investors from all over the world purchase property in Dubai.
Sister company in the Group – Find UK Property provides similar investment properties in the UK whilst partner company Sandcastles, based in Dubai provides marketing and portal services to Dubai based estate agents.