Dubai is Asia’s equivalent to Hong Kong and relies less on oil production compared to many neighboring countries. It’s been a hot-spot for Western celebrities and investors from India, just to mention a few, and seen a big growth in the past decades.
If you plan to buy real estate in Dubai, it’s important that you know how healthy the market is at the moment, and what you can expect for the year to come.
In this article, I explain where the market stands right now, present data and analysis from previous years, and what my predictions are for 2019. Let’s have a look.
Dubai’s real estate market in 2017 & 2018: A throwback
Before we try to forecast Dubai’s real estate market performance in 2019, it’s important that you understand how the market has performed the past years.
The market has had a turbulent time and some of its worst years in 2015 – 2016, when real estate prices declined much. The market has therefore been in a recovery mode in 2017 – 2018.
Still, prices and rents didn’t fall as much during these years, for example, the average sales price decreased by around 5.6% in 2017 according to Savills, while the average rents fell by 7%.
We can call it a price correction for sure as the main reason behind the decline is that the market became one of the hottest in the past two decades. In 2004-2006, this small city had 30,000 cranes, equaling to 25% of all cranes in the world, which speaks for itself.