Build infrastructure and people will come to Dubai.
The prices in Dubai’s real estate market were at a high-level in mid-2014, just after the Dubai Expo 2020 announcement. In the following years, we had a decline in the prices which has been slow and gradual over the years across most communities and segments. Today the prices are at a four-year low.
How long this will continue is literally the million-dollar question. All property around the world go through cycles, but if there is one thing that property markets all over the world teach us, it’s that they always go back up again.
To predict once we have reached the bottom of this cycle is impossible. You only know where the bottom is once the market starts going back up again.
Let’s take a look at some future events and key points which could lead to a turning point in Dubai’s Real Estate Market.
The Expo is only couple of years away. Experts are predicting that the Expo will create 300’000 jobs. That is roughly 10% of the current population. Not all of them will remain in Dubai, but a significant amount will.
Dubai will spend 7 billion AED on infrastructure in the runup of Expo 2020. If we take lesson from around the world again, whenever infrastructure is improved, the property markets improves. Dubai’s population is set to double over the next 12 years to reach over 6 million by 2030.
The Dubai Government is constantly updating their laws towards expats and foreigners. People all around the world get encouraged to invest in Dubai by implementing new laws such as the Expat Five-Year Retirement Visa or the 100% foreign ownership of companies.
To sum up, now is the right time to buy. With the upcoming event of Expo 2020, the massive investments in infrastructure and the supporting government towards investors we can be very optimistic.
Anyone purchasing property in the next six months will look back in five years time and be very thankful for taking the decision.