Analysing real estate investment opportunities and risks in the backdrop of contracting yields and continued market softening.
As 2017 came to a close, a clear trend in residential sales prices remains elusive. A variety of economic parameters in Dubai are beginning to face headwinds; real estate is no exception, and faces its own particular challenges in 2018. Further rental declines, the ongoing strength of the US dollar and the imminent – albeit probably limited – inflationary effects of the introduction of VAT in the emirates are all expected to compress investment yields.
Nevertheless, strengthening economic growth and comparably low prices and acquisition costs suggest that long term investment opportunities are still available to those discerning investors equipped with perceptive market intelligence.
This report highlights some of these real estate investment opportunities in both the residential and commercial markets, in addition to alternative asset classes such as warehousing, education and real estate investment trusts (REITs) to suit a variety of investor appetites.
Source : Core Savills