International Finance
Real Estate

Dubai property price drop to slow down in 2020

Dubai property market
The market will see a 5% to 7% correction as demand increases, according to local media reports

Even though property prices in Dubai are expected to drop 11.3 percent on average this year, the market is expected to get better in 2020 as property price decline is expected to slow down. According to local media reports, the market will see a 5 percent to 7 percent correction as demand increases.

Some experts and industry executives believe that the Dubai property market has matured over the years. According to them, once the market achieves stability, property investment will come down to a more practical and realistic level.

The Dubai real estate market has suffered a major setback in recent times due to oversupply. Property prices in Dubai have fallen by more than nine percent over the past year.

However, Haider Tuaima, head of real estate research at ValuStrat told the media, “Properties are being picked up by investors and end-users alike and at record quantities. And it reflected in the ValuStrat Price Index, which declined at a slower rate of 0.8 percent on a monthly basis in October.”

He added, “High-end properties have proven to have more resilience when facing current market headwinds. The price decline in residential properties is expected to continue in 2020 at a slower pace when compared to this year.”

According to data released by Dubai-based Property Finder, property sale in the Emirates has picked up significantly. The data revealed that 4,774 property sales were registered with the Dubai Land Department in October 2019, highest in a month since 2008.

Jones Lang LaSalle (JJL), an American commercial real estate services firm, revealed that the residential property market in Dubai showed signs of stability in the third quarter of 2019 with price declines also slowing down. According to JJL, apartment sale prices in Dubai increased by 1 percent during the same period.

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