After the end of the first month in 2020, after the spread of the Coronavirus or COVID 19 and the deterioration of the economy, real estate owners and tenants began to feel anxious and kept wondering what is the forecast for the Dubai real estate market in 2020? and there is a lot of conversation around how property prices will evolve.
The last episode of Bayut Real Estate Bytes provides detailed forecasts for Dubai real estate for 2020, with advice and opinions from industry leaders. Read on to find out more about the Dubai property market outlook for 2020.
The real estate market witnessed in the year 2019 a huge increments in real estate transactions, as this astonishing increase amounted to 81.03 AED based on Dubai Land Department (DLD) reports, and this created an exciting situation and exciting opportunities for investors.
With Expo 2020 approaching, real estate prices in Dubai will also likely rise in 2020, although this will depend heavily on the property’s location. More visitors will experience Dubai and the United Arab Emirates, while Expo 2020 projects will improve infrastructure and increase demand for Dubai real estate in 2020. The average price per square meter in Dubai is much lower than in other major cities such as New York, Hong Kong, and Geneva.
This aspect of ‘’affordable luxury’’ will create encouragement for property in Dubai, which leads to price increases and bodes well for the rest of the economic sectors.
Another factor that should be taken into account for the forecast for the Dubai real estate market for 2020 is proactive initiatives by the government, such as the formation of the Supreme Committee for Real Estate Planning. With the implementation of such real estate laws in Dubai, the number of project launches by developers will also be better monitored, paving the way for a more sustainable real estate market. The increased regulation and long-term outlook will also encourage more institutional interest in Dubai’s real estate sector in 2020, as more real estate investment funds and crowdfunding companies enter the market.
We forecast that Dubai will see more affordable projects being developed in 2020.