Despite a slowdown of the Dubai Property Market over the last two years, Knight Frank believes that it is becoming a much more mature sector, and this is something that should enamour investors to the emirate’s real estate.
Property values in Dubai fell by over 50% between 2008 and 2010, only for losses to fully recover by 2014. But as market regulators over the last two years have been quick to introduce speculation reducing measures such as mortgage caps and the doubling of transaction fees, interest and market performance has been going through a phase of correction.
But Knight Frank believes that these regulations are good for the market’s future.
A new report from the international property firm said: “With the government stepping in to curb speculative activity through tightening mortgage regulations and capping price increments, it is evident that lessons has been learnt from the 2008 downturn and the market is heading steadily to be more mature and better controlled.”
Furthermore, the report also highlighted Dubai’s strong performance in the rental market, stating that with rental yields reaching more than 7%, “Dubai still stands tall among real estate capitals in the world for investor seeking income generating properties”. The Dubai Metro and Dubai Tram has changed the real estate scenario of Dubai making many areas accessible. There are various clusters that are developing at various levels, be in Business Bay, Downtown Dubai, Dubai Investment Park or the latest Dubai South. Watch out this space for more information on the upcoming hotspots of Dubai property market.
