The property market in Dubai continues to show some definite signs of recovery well ahead of the World Expo that is happening in 2020. The Emirate has seen a total of AED 204 billion for transactions in real estate for this year. Since it has peaked in the year 2014, the prices of real estate properties in Dubai has been experiencing a slump and then bottomed out at the start of 2017.

There are positive signs of recovery that are exhibited by the property market in the Emirate as the sales value of the central neighborhoods that are known for their hefty pricing are enjoying some fantastic high for the first three quarters of this year. These include those properties that surround the world-famous Burj Khalifa, based on a statement released by the government earlier this week.

It has been announced by Dubai’s Land Department that the first nine months of 2017 has set a total of US$55.54 billion or AED 204 billion. This is the total from the overall real estate transactions amounting to 52, 000 which include sales for building, land, home, as well as mortgages.

The recent years have not been very kind to the real estate market in the Emirate due to the regional economic conditions that have been experienced in the area. This has been mainly attributed to the plummeting oil prices as this has indeed put some considerable strain on the purses of the wealthy in Dubai. Since the market has peaked in 2013 to 2014, the prices for residential properties have seen a considerable decline and it bottomed out at the start of this year.

The sector is expected to perform immensely better than how it did in 2016. The volume of real estate transactions totaled to AED 259 billion last year or a total of US 70.52 billion. Data has not been released through on the Emirate’s performance for the first nine months of last year.

According to Sultan Butti Binj Mejren, the market is expected to remain on its current upward trajectory where the growth is sustained. It is also anticipated to see the demand continue to diversify across the various categories in real estate. Dubai Land Department’s director-general also stated that this momentum in the market is driven and sustained by a number of factors especially in the light of the upcoming launch of the Dubai Expo 2020.

Luxury housing and centres of business have drawn the largest volume in the sales exhibited for the first nine months of 2017. First in the rank is Burj Khalifa with a total transaction of 1,650 or a total of AED 6.239 billion. It is one of the highest priced parts of the city. Second on the list is Business Bay. It is directly adjacent to the Burj Khalifa with transactions reaching a total of AED 5.6 billion for the first three quarters of this year. 

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The commercial property market in London is experiencing a downturn. This lead to an outlook for the market that is more subdued when compared to how the rest of the country is expected to perform. This indicates that the British capital is bucking the trend in the country which sees a rise in the demand from both occupiers and investors.

RICS or the Royal Institution of Chartered Surveyors has conducted a survey recently and has found out that of the respondents, three-quarters warned of how the market might be looking at a downturn stage. This is when compared to how the property market outside of the capital is expected to see some very positive growth especially when it comes to industrial, retail, and office rentals.

The survey has been participated by a total of 347 members of RICS’ commercial property. It has revealed that the present performance of the London commercial property market may be due to the negative sentiments concerning retail and office rent. This, in turn, has canceled out most of the positive expectations that used to pervade the industrial rent that is prevalent in the capital.

The British capital is displaying a sentiment that is based on more cautious levels. There is a weakening demand from occupiers and this has resulted in the production of negative expectations. This has also led to the increase in availability, as well as a rise in inducements.

In the investment markets, RICS stated that the trend seems to show more resilience. However, when it comes to headline capital expectations, the forecasts are somehow flat at present. The market in central London has the highest number of respondents in the survey that view the properties sold there to be overpriced, with the statistics clocking at 67%.

Chief economist of RICS, Simon Rubinsohn, said that the momentum in the capital for the occupier market is being seen as challenging. This is when compared to other parts of the country. Meanwhile, rents in the capital are remaining under reassure from the industrial market. The same is being mirrored with concerns in valuations as about two-thirds of the respondents view the market in London as expensive.

It is noteworthy to consider though that foreign investors still continue to see London as an attractive setting and home for investment. This is especially true with the real estate condition in the city in general as well as the office sector.

Rubinsohn further stated that the dilemma that needs to be resolved moving forward has to do with the response of the market to the likely increase in the interest rate next month. This is the first to happen in a decade. The expectation about the moderate policy tightening is that it should help weather the mood shift. Still, this should be viewed as a potential challenge especial in the event that rates will further increase than the figures that have already been predicted.

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