Dubai may fall short on housing supply by Expo 2020

By chasing the existing period of stabilisation, the housing market of Dubai may face a shortfall of supply in Dubai Expo 2020 as the World Expo, which is a six-month-long show approach, quoted by an expert.

In order to tackle with the demand for housing in next five years, Dubai might require more low-end and ultra-luxury properties, said Jesse Downs, the managing director of Phidar Advisory while speaking at the destination Dubai 2020 conference held recently.

For an instance, the most underprovided segment, in total units, is housing for the income group with an equal monthly housing spend of Dh3,000 to Dh5,500 ($817 to $1497), based on a 30-35 percent housing spend,” said Downs.

According to her, there could be property investment opportunities at the lower end and the very peak of the market.

Downs stated that, there is a shortfall and it is considerable. And by 2020, we see an additional undersupply. There are opportunities, but where they are? For the mid and high income sector, I think we are overbuilding the mind.

She also added that, “We require more mid-low and low income and genuine luxury as well.

As compared to the third quarter, in the fourth quarter of 2014, the prices of nominal apartments fell down by 3.3 percent where the nominal single family home (SFH) sale prices falls by 0.9 cent quarter-on-quarter. In comparison to the previous quarter, the quarter 4 the average apartment net yields increased to 6.7 percent

Jones Lang Lasalle, the Global real estate consultancy, said there are total amounts of 25,000 hosing that would be added to the market of Dubai, this year and this stipulation may sate require for the short period of time.

On the other hand, a huge majority of experts at the Destination Dubai 2020 Summit understood that Dubai would definitely require a significant number of new developments to collect the 24 million tourists during the expo.

There is expected to be around 270, 000 by the expected economic activity that is associated with the Dubai property expo.

As compared to its past,  when it has more regulations in the place to help in reducing the risks, Dubai is more up to for durable stability for the long term stable growth, said by Franck Delage, the real estate analyst (Europe, Middle East and Africa) at ratings agency S&P

He also mentioned that the ratings, which have been given by all real estate corporations in Dubai has conferred a constant outlook and he doesn’t think that is rating will change over the next 12 months

 

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