2020 Property Outlook: What to expect from Dubai’s residential property market?


According to Knight Frank Research, in 2019, the sale prices of residential properties fell by 7.5 percent in Abu Dhabi, whereas the costs of residential properties in Dubai fell by 6 percent. Furthermore, it is also important to note the transactional volumes of residential sales. These values have risen by 28 percent since 2018. So, if you’re thinking about investing in the Dubai real estate market, you could expect significant results from Dubai’s residential property market in 2020.

The Dubai Expo of 2020

With the upcoming Dubai Expo of 2020, property prices are going to be positively affected. With over 50,000 units expected to hit the real estate market in 2020, the supply and demand may be the critical factor. This surge is primarily due to the number of visitors, currently assumed to be over 25 million, who will visit Dubai during the Dubai Expo of 2020. The vital fact to look out for is whether or not these short term visits will turn into long term residencies or even future property investments.

Demand for short – term rentals

During the Dubai Expo of 2020, some visitors may stay in Dubai just for a few days. Most visitors might stay here for weeks, if not months. With this influx of guests, hotel prices can get expensive. Furthermore, hotel rooms may get sold out. Hence, you may anticipate that many visitors are going to prefer staying in short-term rental properties. As more and more tourists visit Dubai during the Expo, the more the demand for rental properties will rise.

Change in rental prices

If you’re thinking about investing in the Dubai real estate market for rental returns, then you might end up covering a huge chunk of your initial investment through rental incomes. However, experts are currently predicting that rental prices in Dubai could decrease in 2020. Nonetheless, with the advantageous demand in residential properties, an investment in Dubai’s real estate market will be a fruitful one.

Affordable prices and rent-free living

As more and more units are entering the real estate market, the supply of properties reaches a new high. Thus, the prices of these residential properties could decline to economic costs. Therefore, more and more people will be on the lookout to buy property in Dubai. With favorable prices and new units, who won’t want to own their own home instead of paying a monthly rental?

Increase in off-plan property investments

Exciting offers on off-plan properties are the basis of the Dubai real estate industry. Investors enjoy premium deals with potential rental returns. Off-plan or under-construction properties can be a cost-effective option, as well!

Does government policy affect rentals?

With the UAE government approving the long-term five-year visa for all nationalities, its time to anticipate an influx of foreign nationals. More guests mean more demand for short-term rentals and holiday homes. Investing in Dubai’s real estate market can be lucrative and wise.

End-users invest in Dubai

A few years ago, developers focused on building luxury apartments and high-rise buildings, which mainly catered to the wealthy and affluent investors. Now, there has been a shift in the trend; developers are now focusing on building affordable housing units. For instance, Downtown Dubai boasts high-rise buildings and luxurious apartments. Although there are not enough wealthy investors to match the supply. Hence currently, builders are listening to address this demand by supplying affordable housing to Dubai’s real estate market.

What is REST?

Real Estate Self Transaction is a new venture by the Dubai Land Department. REST aims to reduce paperwork and documentation; the Dubai Land Department launched this smart digital platform for sellers, buyers, landlords, and tenants alike. A unique portal that allows you to buy, sell, or rent out their properties without hiring a real estate agent. This effort cuts the cost involved in acquiring a property. And this most effectively simplifies the buying, selling, or renting processes. REST assured – the real estate industry aims at higher sales and volume rentals through its platform.

 Dubai is a tenants market

As mare expected to hit the real estate market in 2020, the real estate market of Dubai is slowly becoming a market for tenants. The competitive edge in real estate provides a myriad of choices in homes. Therefore, you need to comply with the market expectations of Dubai and offer a top-notch property for sale or rent. Your apartment needs to have all the modern amenities and an ideal location.

Most importantly, it needs to be in sync with competitive real estate prices. Consider 2020 a buyer’s and tenants year and the property a perfect home.

The Gold Card is a golden offer

The Golden Card – an initiative by the UAE government grants residency permits. This scheme aims at inviting wealthy visitors as well as talented professionals like doctors, engineers, artists, and scientists into Dubai by giving them a permanent residency. When this scheme began, investors from over 70 countries brought nearly USD 27 billion into the real estate market.

This ultimate combination of the Golden Card and the Dubai Expo of 2020 can be momentous for Dubai’s real estate industry.

Time to invest

If you’re contemplating a short -term investment in Dubai’s real estate market or as a fixed- upper investment, you could rethink your options. However, long-term property investment can be an excellent plan you need—growing rentals and friendly pricings – deals that make 2020 Dubai property investments a success.