Survey - UAE investors expect market growth over the next 12 months

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A survey released by the organizers of Cityscape Global 2015 in Dubai showed that the majority of investors in the United Arab Emirates expect growth in the real estate market over the coming year, contrary to analysts“ expectations. The survey showed that more than half of homebuyers (54 percent) have a positive outlook on continued growth in Dubai’s real estate market, while 58 percent expect sales and rental prices to rise over the coming year. according to a survey conducted by YouGov on behalf of Informa, the organizers of Cityscape Global, where more than 100 developers in the UAE are expected to showcase their projects.

”Lara Al-Barazi, Head of Real Estate Research at YouGov, said,”The study highlighted positive sentiment across all sectors“.

She added in a statement, ”Investors, prospective homebuyers, and real estate professionals alike expect continued growth in Dubai’s real estate market next year.”

“The most positive news is the extent of investor confidence in Dubai, which reveals the high potential of this sector in the emirate and the importance of understanding the demands of potential buyers.”

However, industry analysts such as Jones Lang LaSalle and Cavendish Maxwell expect prices to moderate during the remainder of 2015, especially after rents and sale prices in Dubai declined this year.

In its second-quarter report, Tasweeq Real Estate Development said that residential property prices in Dubai fell by up to 10 percent during the second quarter of 2015 compared to the same period last year. During the same period, JLL reported that apartment sales fell by 1 percent, while Cavendish & Maxwell recorded a 2 percent decline. Some analysts also reported a decline in villa prices of between 2 and 2.4 percent.

Dubai Real Estate Market - 2015

Earlier this month, Walter Moulman said that the recent declines in the Dubai real estate market are part of a natural and inevitable correction, whether in the medium or long term.

A YouGov survey indicated that 861 residents of the United Arab Emirates found that location was an important factor in determining where investors purchase their properties. The survey also revealed that properties near public transportation are the most attractive and in highest demand among investors at 56 percent, followed by properties near grocery stores at 44 percent, followed by properties near shopping malls and retail centers at 41 percent, and then properties near mosques at 37 percent.