Unlike the Dubai office market, which is largely fragmented, the residential market has been bottoming throughout 2016 as a single entity. However, upon detailed analysis we see Dubai residential districts spread across the trough. Furthermore, some of the areas, especially lower to mid-segment submarkets, have started to display a steady upward creep in sales prices - reversing their course from mid-2016. Rents, however, have been slow to mirror the same course as we continue to see further contractions in lease rates.
The potential of a double dip in sales prices may loom over the present market, although we foresee a sustainable revival to continue in the run up to 2020, provided there are no external macro-economic shocks. In the run up to Expo 2020, in what is now a more mature and deeper Dubai residential market, sales prices should hold value in the short to mid-term.
Source : Core Savills