Your POA Reviews: The Dubai Property Market in 2018

“What do you think will happen to the Dubai property market?” is hands down, one of the most asked questions of 2018. Going into 2019, this is an increasingly pressing issue and thus, still lingers in the minds and mouths of expats, investors and virtually anyone who takes an interest in the intricacies of the Dubai property market.

Dubai’s current real estate environment is often described as a “buyers’ market”. In early 2018 it became starkly clear that it was being consumed by an oversupply of property as compared to a slowing down in demand for the same, which placed a downward pressure on prices. This was coupled with more attractive payment plans in the off-plan market, more accessible home loan offers, the granting of long-term property investor visas and the absorption of service charges and fees on key projects, by big players like EMAAR and even the Dubai Land Department. Dubai is currently a “buyers’ market” because ultimately, property ownership for residents was and has been rendered more desirable than renting a property.

The higher-end properties are now being purchased as homes instead of as investments and off-plan properties have begun focusing on creating good quality affordable housing. Meanwhile, commercial properties struggled throughout 2018 and going into 2019. All in all, “according to the latest data by the Dubai Land Department, Dubai’s real estate sector experienced a year-on-year increase in investments in the first 9 months of the year, totaling nearly $14bn”. There was also an influx of the Chinese expatriate whose investment is likely to skyrocket in 2019.

The good news is that the market is not dead; it is simply adjusting to the oversupply of property. The sun shines bright for residential properties and even though they are not being sold at the prices they once were, there might be some light at the end of the tunnel for sellers who are sending funds to the UK or Europe in Pound Sterling/Euro, with the current exchange rates bridging the gap, so to speak. Interestingly, it is the commercial property sector that is under great pressure. A different kind of investment is being incentivized in 2019 through the aid of government policies like the property-investor visa and favorable house loans and payment plans. Someone who previously might’ve bought a prime property as an investment, is now interested in purchasing it as a residence. Good quality affordable housing for rent is also in high demand. With Expo 2020 just around the corner, the hope is that the oversupply will somewhat be absorbed and therefore prices might rise, however the extent to which they do, remains a curious question mark.

No one can know for sure what the future of the Dubai property market holds—here at Your POA, we cannot wait to find out!

By the way, we attended the Wealth Arabia Summit! Did you? Click here to find out more!

Author: Philip Smith
Philip Smith, LL.B. (Hons.): Founder & Principal of Your POA – The Leading Power of Attorney Company in Dubai and the UAE

Experience the expertise of Philip Smith, the highly-regarded Founder and Principal of Your POA, the premier Power of Attorney company in Dubai and the UAE. Boasting an exceptional legal background, Philip has earned a reputation for his outstanding market knowledge, trustworthiness, and discretion. As an authoritative expert in UAE property matters, strategic advisory, and corporate services, he has advised a diverse range of high-profile clients, adeptly safeguarding their interests while accomplishing their individual objectives....

Philip holds an LL.B. (Hons.) degree and possesses extensive hands-on experience in the UAE. His comprehensive skillset covers property conveyancing, power of attorney representation, private client management, strategic advisory services, business consultancy services, corporate service operations, market entry, asset protection, legal matters, regulatory compliance, real estate, corporate structuring and re-structuring, company administration, and legacy planning.

In addition, Philip's expertise encompasses real estate acquisitions, structuring, ownership transfers, property management, portfolio and account management, corporate structuring and re-structuring, company administration, legacy planning, and asset protection for entrepreneurs and growth companies. This impressive range of skills ensures his clients receive the highest standard of service, tailored to their specific needs.

As the leader of Your POA, Philip directs a dedicated team of professionals committed to upholding his values of excellence and discretion. Together, they have solidified Your POA's position as the top Power of Attorney company in Dubai and the UAE, offering customised services that consistently exceed client expectations.

Place your trust in the proven expertise and impeccable reputation of Philip Smith and the team at Your POA. With an unwavering commitment to understanding and achieving your objectives, and a discreet approach that prioritises the protection of your interests, you can be confident that your affairs are in the hands of seasoned professionals. Philip's wealth of experience and in-depth market knowledge make him the ideal partner for navigating the intricacies of the UAE property and corporate services landscape.
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