Real Estate & Property, Permanent, BWP...
With any emerging market, overshoots in supply and demand can cause softer periods in the property market. Over the past few years, a stronger dollar, caps on borrowing and still weak oil prices have contributed to a softer Dubai real estate (and labour) market, but the headwinds are lightening. Hope is on the horizon.
Dubai remains one of the premium destinations for investment in the world, ranking sixth- highest for inbound property investment, and as Expo 2020 approaches, the maturing real estate market is regaining its footing.
Chinese investment has been particularly active as a policy that grants Chinese nationals a visa on entry into the country has taken effect. Given the pegged US dollar against the
Dirham, British and European investment is seen to be returning.
Sultan Butti bin Mejren, director-general of the Dubai Land Department said "Analysts and experts predict an upsurge as we enter 2019 with unprecedented strength, as many
strategic infrastructure projects are due to be completed in Dubai in preparation for Expo 2020.”
It has been a tough few years with significant double-digit declines, but you can’t keep the lid on growth here for too long. The government is investing 43% of its 2018 budget in infrastructure projects, public services and the stimulation of the knowledge economy, so it is likely that economic and social growth will follow.
Lewis Allsopp, CEO, real estate firm Allsopp & Allsopp, said Dubai's property market would continue to mature, with people changing from renting to buying, with hotspots in the
Jumeriah and Dubai South communities ahead of Expo 2020 seeing particular growth.
In the microcosm of this amazing city state, the interconnectivity of residential and commercial real estate will continue to be close. When the economy is on an upswing, real estate takes a swing up and it is now clear that this cannot just be tied to the oil prices. Dubai and the wider region are now about more than natural resources, but such a transformation is taking time to filter down to the fundamentals.
As a recruiter working in the real estate market, it is interesting that companies are starting to diversify their sources of talent. The trend of localisation continues and the days of (solely) relying on foreign talent are over. The more locals you hire, the more stable the economy will be and the better it will be for everyone in the long run. I have written about it recently – corporates simply have to understand what it takes to be an attractive employer.
Volatility (in real estate and other markets) will be around for many years to come, but the solution comes in how we grow after each volatile phase.
The government is continuing to stimulate the economy, foreign ownership rules are becoming more attractive, rental yields remain high, the regulatory environment is improving and global connectivity is ever a priority.
It seems that property in Dubai will soon be in strong demand again.