After a period of significant growth in Dubai property prices across the board from 2013 to mid-2014, there has been a softening in demand in the past 6 to 9 months. The rift between sellers and buyers’ expectations widened in the last quarter of 2014. During recent months, it has been observed that the compromise in which the buyer and seller’s expectancy meet has started to merge and prices seem more realistic, with transactions increasing.
This movement is not confined to units adjacent to Metro links or proposed extensions but more associated with the low to mid-level property price bracket or the attainability of at least 7% rental yield. A further potential 10% decrease is anticipated in both sale and rental prices during 2015 to effectuate this stabilization period. However, during 2016 and the years leading up to 2020, the market recovering again with more realistic appreciations is envisaged supported by the continued development of the infrastructure and economy of Dubai.
