Luxury residential property in Dubai has endured a rough patch recently, but there appears to be a light at the end of the finely appointed tunnel.
ArabianBusiness.com reports on new findings from Cluttons which predict that the downward spiral of house prices will hit the bottom by the end of 2016.
According to its Dubai 2015/16 Winter Residential Property Market Outlook, values for both apartments (-0.8 percent) and villas (-0.5 percent) dipped marginally during the third quarter of 2015, the fifth consecutive quarter of price falls. Cluttons said house price declines in the region of 3-5 percent are expected over the next 12 months, impacted by faltering global growth and supply levels creeping upwards. But at the same time infrastructure investments planned around the looming Expo 2020 will boost the rate of job creation and the rate of new households created, the real estate consultancy said.
Steven Morgan, CEO of Cluttons Middle East, additionally noted that “Dubai still offers what is perceived to be good value for money, which is aiding the performance of this segment of the market.”
For high-end developers and investors, it would appear that the Expo can’t come soon enough.
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