Savvy developers and real estate brokers will capitalise on this more focused US interest and start marketing to them accordingly
Dubai , UAE (PRWEB UK) 12 January 2017
It has been a year of big shocks in 2016, with global economies being hit by several unexpected events: Brexit, Donald Trump winning the US election, and the Italian referendum.
While property market analysts attempt to make some sense of what has been a roller coaster year, propertytrader.ae – a leading Dubai real estate portal – offers five key trends which it believes will shape the real estate market in 2017, and in the years that follow.
Move over millennials – hello Generation Z
There was much talk of catering to the ‘picky’ and ‘hard to pin down’ millennial generation in 2016, but the truth is they are soon to be old news. It won’t be long before Gen Z reaches the market, and according to the National Association of Realtors in the US they are a whole different breed of potential property buyer. Generation Z came of age during global recession, war, terrorism, and a stock-market collapse. So, what will they want? The answer is security in the form of home ownership. In fact, 97% of the Gen Z age group wants to own a home as soon as they can, according to a recent survey in the US.
The Trump effect
When Donald Trump becomes President of the US there could be dramatic repercussions on the real estate market in Dubai. In the hours after Trump won the election, propertytrader.ae site visitor statistics showed sudden increased interest in Dubai from America. Throughout 2016, the buyer search ranking of US visitors on the site was consistently at about fifth or sixth place. Now it is up to third place. “I think savvy developers and real estate brokers will capitalise on this more focused US interest and start marketing to them accordingly,” says Umer Ali, Sales Director, propertytrader.ae.
The Dubai Expo 2020 effect
Ever since Dubai won the bid to host the World Expo 2020, the local real estate market has been waiting to feel the full benefit of this prestigious event. Most now predict 2017 onwards will see things really kick in with the commencement of major infrastructure and real estate projects. The areas in and around Al Maktoum International Airport such as Dubai South, the main venue of the World Expo, and Al Furjan are already seeing a lot of development activity. Dubai is expecting to receive 25 million tourists for the event, and the emirate’s real estate industry must continue to strengthen its offering to deal with the influx of people. Expect developers to target delivering projects in 2018-2019...
Ready to launch
2016 has been of a year of project launches and cautious optimism in Dubai. Al Habtoor City and the Dubai Canal came to fruition, and after a relatively dry first three quarters of the year in terms of new project announcements, the past month has seen master developers announce projects worth more than Dh5 billion. This would suggest developers have confidence in the market's ability to absorb the supply – and the knock-on effect is bound to be new developments popping up at an increased rate. In the real estate market, confidence breeds confidence after all.
Affordable housing will finally be a thing
Online searches for affordable apartments for sale in Dubai have been soaring for a while – as seen in PropertyTrader site data – and it seems finally that Dubai’s real estate developers are getting the message. A raft of new projects has arrived, or are on the way, that will answer this need – including Dubai Properties Rahaba Residences, a brand new alternative for employers who are interested in housing all of their staff in one, central location in the heart of Dubailand. And since the market is keen to cater to the rising number of budget conscious expats – expect many more projects to be announced.