Aerial view of Emirates Hills / Image Credit: Megan Hirons Mahon, Gulf News
Demand for high-end residential property in Dubai will remain stable right through the end of the decade, while it will be less so for the affordable options, according to an outlook by the consultancy Core.
“The relative resilience of prices in most of the established ultra-prime areas is an interesting aspect coming to the fore,” said David Godchaux, CEO. This is “underpinned by limited new supply and continued demand from UHNWI (ultra high networth investors) wanting to own ultra-prime properties in Dubai’s iconic locations such as villas in Palm Jumeirah and Emirates Hills, along with a few luxury apartments in the Downtown and Marina districts and the new Jumeirah freehold developments like City Walk.”
A number of new residential projects — driven by the ‘affordable housing’ theme — have come to the market, with “attractive yields appealing to investors and real estate funds looking to diversify their portfolio”.
But the emirate’s affordable housing market will continue to present itself as something of an unstable investment opportunity.
According to Godchaux, “While we do not believe strongly in affordable housing as a compelling investment in the long-term in Dubai in comparison to other segments of the market, we still believe there are good opportunities to seize given that most potential customers in this segment are still unable to shift to ownership due to current mortgage restrictions keeping the yields at artificially high levels.”
Source: Staff Report, gulfnews.com