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Investors in Dubai realty will need to start shifting their gaze to 2017 — that's when the market is most likely to start shaking off its torpor, according to the consultancy KPMG. And it lists five reasons that could come together to dictate market momentum.
Obviously, the Expo 2020 and the build-up that will start in earnest by then is to be one factor, as would any improvement in liquidity within the marketplace. Availability of affordable housing and end users making an entry in sizeable numbers will also be key. On the flip side, much of the favourable sentiments will be shaped by what happens to oil prices.
Specific to the issue of liquidity, ''several large UAE banks seem reluctant to lend going into 2016. This may impact the ability of buyers to invest in the real estate market'', the KPMG report notes. ''There will be pressure on availability of capital to buy properties in the primary and secondary market.
''That, along with a declining oil price, has put even further pressure on significant players in the regional market.''
''While oil prices remain well below the long term average, which is clearly having an effect on market confidence, Dubai's improved regulatory environment, broader investor profile, and increased maturity are all indicators that its real estate market should eventually self-correct,'' said Sidharth Mehta, Partner and Head of Building, Construction and Real Estate with KPMG Lower Gulf.
Get a glimpse on the core sectors that drive Dubai Investments' Dh1.1b net profit
Source: Staff Report, gulfnews.com