Property prices in Dubai are forecast to stabilise in 2022, according to a poll of analysts and real estate experts.
Price declines in the emirate are set to slow to 4 percent this year and 1.3 percent next year, said the poll conducted by Reuters.
This compares to several reports from consulting firms which showed average Dubai property values dropped by more than 10 percent last year.
Analysts said they are optimistic about prospects relating to Expo 2020, which Dubai will host for six months from October.
But according to 11 of the 15 poll respondents, a surplus of existing properties for sale could still weigh on the real estate market’s recovery.
An economic downturn was considered the biggest downside risk by three of the analysts, with only one respondent citing a further decline in oil prices.
Residential property is still rated relatively affordable, the poll suggested. On a scale of 1-10, from cheap to expensive, the median rating from the analysts was 6.
Earlier this week, Dana Salbak, the head of MENA research at real estate invest and advisory firm JLL told Arabian Business that Dubai’s real estate sector will “hover” near the bottom of the market while it undergoes a “period of stabilisation” over the coming year.
Salbak said that Dubai’s real estate market has softened over the last several years following an uptick after the 2014 announcement that Dubai will host Expo in 2020.
JLL data shows that “primary” areas – such as Downtown Dubai and Dubai Marina – saw further declines but continued to perform above average, while secondary locations, such as Motor City, JVT and JVC, saw steeper declines over the past year.
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