Despite a property lull, Dubai is showing signs of growth yet again as figure reports for 2019 are positive. The first two months of 2019 had a high number of transactions paired with developers reporting good numbers as lower prices in Dubai attract a new wave of interest despite oversupply.
“In the first two months of 2019, there is an increase in the number of transactions. There are more buyers in the market. The government’s initiatives like 100 per cent foreign ownership and 10-year visa are the privilege that the investors are looking for. We are targeting new markets like Africa, the US, and Canada to enhance foreign investments into Dubai,” said Majida Ali Rashid, assistant director-general of Dubai Land Department (DLD).
The proof is in the figures, as in 2018 (for 11 months) the transaction reached a level of Dh194 billion while investments reached Dh62 during January and November.
Farhad Azizi, CEO, Azizi Developments also commented on the renewed interest stating,
The first quarter of 2019 is much better than 2018; things had started to improve from December 2018, not just for us, but for other developers as well. Momentum is picking up and there is a lot of excitement ahead of Expo 2020 Dubai. I believe it is a good time to buy because prices are low.
The good thing is that new demand is coming from new buyers. Majority of them are end-user and non-residents from China, GCC, Africa, India, and Pakistan.
Like the majority of companies in the property developing sector, Azizi is also pinning hopes on Expo 2020, which is expected to be a key driver for the real estate sector and the economy as a whole.
It is predicted that the Expo 2020 event will host 25 million visitors bringing an estimated 3.5 per cent boost to the economy.
Although the event is set to produce interest, the market is already improving according to Property Finder who have reported that off-plan properties accounted for 55 per cent of Dubai market transactions in the first 2 months of 2019 while secondary market deals made up the remaining 45 per cent of the share. This is a world of difference from the earlier market where off-plan sales accounted for the majority however now the balance in figures suggests that Dubai is not just an investor-driven market.
Prices in the second-hand market are proving to be increasingly attractive with reasonable prices that are contributing to the newfound demand that will balance out the current housing supply.