According to The National, the Dubai real estate market hit an 11 year high in the year 2019 as property prices increased a whopping 20 per cent compared to the previous year. With the upcoming Dubai Expo, the number of properties that are available for sale in Dubai has increased significantly, which has led many investors to believe that there needs to be some concept of supply control. With government initiatives like the “Golden Card” that allows residency permits and a long-term residency visa, UAE has seen a rise in the demand for real estate. Which brings us to the pertaining question at hand, is 2020 a good year to buy real estate in UAE? If you are looking for apartments for sale in Dubai, have a look at these five expert opinions on buying real estate in the UAE before making this decision.
Ozan Demir, Director – Operations & Research, REIDIN
According to Ozan Demir, based on economic indicators and the government’s reserves of AED 2 billion to support the Dubai Expo of 2020, it is expected that there will be a significant increase in real estate transactions in 2020. Due to the number of newly launched residential developments as well as an increase in off-plan properties coupled with affordable real estate pricing, the confidence of real estate investors is on the rise.
Zhann Jochinke, Chief Commercial Officer, Property Monitor
Zhann Jochinke believes that the Dubai Expo of 2020 is crucial when it comes to the demand and supply of real estate. He believes that as long as developers focus on finishing their ongoing projects, and there is no sudden increase in the supply of real estate, UAE’s real estate market will move in the right direction. Jochinke is hopeful of achieving price actualisation in 2020 as long as the demand and supply remain stable.
Lynnette Abad, Director of Data and Research, Property Finder
Lynnette Abad bases her findings on the date of Data Finder, which suggests that there has been a significant increase in property transactions in Dubai every year. She believes that there is still a very high demand for property in UAE, which in turn ensures that real estate transactions will be on the rise in 2020, mainly due to the upcoming Dubai Expo. Also, a decline in the prices of real estate coupled with the fact that stock became more affordable encouraged real estate investors and end-buyers to invest in property. She also believes that Dubai will see a rebound in real estate prices, especially in areas that surrounded the Dubai Expo.
Robert Booth, Managing Director, Ellington Properties
Robert Booth is confident that 2020 is a positive year for the real estate sector in the UAE. Since the Dubai real estate market has often been considered as a long-term investment as opposed to a short term one, the yields and returns on investment have been profitable, which in turn has created market stability. Booth believes that the real estate investors will consider things like central locations, design-led homes and homes that are equipped with the latest technology, hence driving investors to purchase properties that are considered state of the art. He also believes that the Dubai Expo of 2020 will attract investors with high net worths which in turn will boost the real estate market.
Mohammed Zaal, CEO of KOA
According to Mohammed Zaal, the market is not moving as fast as it was. However, investor sentiment has changed. Investors are now looking at real estate in UAE as a long-term investment, more importantly, a long-term personal investment. People have become smarter buyers, and they are considering long-term opportunities as opposed to short-term profits. However, this new investor sentiment is excellent for real estate developers and the economy as a whole, which is why it is considered a positive trend.
As you can see, most of these experts believe that AUE’s real estate market is headed towards positive growth. If you are thinking of purchasing a property in UAE in the year 2020, be it for rental yields, commercial purposes or personal use, this investment will be fruitful. To start the process, have a look at some properties that are available for sale in Dubai on the Allsopp & Allsopp website.