Dubai’s real estate market is witnessing a strong recovery from a slowdown that started from the beginning of 2015. A significant increase in investments has been recorded in the first half of 2016 which clearly indicates towards the bottoming of sales prices. Dubai real estate brokers have recorded an increase in overseas inquiries including a large number from Russia. After a major fall in the value of ruble, Russian investors were regressed from Dubai’s property market, but now they seem to have returned and making large investments. Russians have been actively interested in buying luxury properties in Dubai for a number of reasons including prolific returns, sunny weather, ease of buying and renting a property and high rental yields. These factors have not only lured Russians but Indians, Pakistanis and British have been on the top of the list for investing in Dubai. After Britain’s decision to exit the European Union, there had been speculations of its effect on Dubai’s real estate market. After the decision the pound weakened which has made property expensive for British investors who were earlier taking advantage of a strong exchange rate. This is however a short term effect on the market as the market remains buoyant welcoming investors from GCC and other countries. In the past 2 and half years investors from Pakistan have bought properties worth 18 billion Dirham and they rank behind Indians who also have invested majorly in Dubai realty sector. Indians and Pakistanis have age old bonding with UAE and economic and political stability and high taxes in home countries attract these nationalities to invest in Dubai’s transparent market.
There has been a mixed response from experts with some predicting the bottoming of the market while some argue of the slow down to continue for a little longer. Like any other real estate market Dubai property has seen a boom and slump, but the strong indication is the quick recovery that has been seen. Dubai’s diversified economy has cushioned the real estate market from external factors like the recent drop in global oil prices. The hosting of the EXPO 2020 is also a major factor that investors believe is going to give a boost to real estate in Dubai as catering to this mega event needs a lot of new infrastructure to be built and new manpower to be imported to make that happen. This new influx of manpower will give rise to increased demand for residential properties, thus pushing the sales price up and investors expect to reap benefits.