Market sentiment towards the purchase of residential property in Dubai has softened compared with 2016 due to higher buyer and macro-economic uncertainty particularly for first-time investors, according to the property consultancy Core Savills' latest annual survey.
Only 34 per cent of respondents to the survey said Dubai’s property market has exhibited signs of recovery, compared with 50 per cent in last year’s survey.
Eight out of 10 respondents who do not believe in the sector’s recovery expect the market to be oversupplied by 2020.
Dubai's property market has suffered from an economic slowdown and, until recently, the appreciation of the US dollar, to which the dirham is linked, making it expensive for some investors to buy real estate in the emirate.
Core Savills said there is a discrepancy between sentiment and reality, given that there is a 40 to 50 per cent lag in the past five to six years between the number of announced and delivered units. About 15,000 to 18,000 units are delivered on average every year, boosting existing stock by 3 per cent to 4 per cent.
The survey also showed 20 per cent of potential buyers below the Dh1 million market attribute their hesitancy to lack of market knowledge.
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“These factors accentuate the fear to take a ‘leap of faith’ for many first-time buyers in their decision to acquire a property in Dubai, despite the very convincing signs of maturity, stability and added depth to the market that have become apparent since 2011,” said David Godchaux, the chief executive of Core Savills. “This is further illustrated by the ratio of existing owners in the total number of potential buyers: about 36 per cent of those who are planning to acquire a unit over the next 12 months, already own a property in Dubai, and 50 per cent of existing owners are considering further potential acquisitions.”
With regards to off-plan sales, twice as many investors are interested in purchasing property than end-users, particularly in the apartment segment below the Dh2m mark, the survey showed.
As developers try to change this trend by offering attractive payment plans, 64 per cent of respondents said these plans encourage buyers to buy off-plan rather than existing properties.
The access to mortgage financing, though, remains the biggest deterrent to buyers of properties below the Dh1m price point
“This has a relatively strong impact on the bottom segment from an end-user point of view, because buyers are 30 per cent more likely to prefer mortgage as a finance mean for acquisitions below Dh1m [87 per cent of them would prefer a mortgage] than a purchase above Dh4m,” said Mr Godchaux.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
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Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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