5 trends that will shape Dubai real estate in 2017
* Despite a turbulent 2016, Dubai continues to be very attractive to real estate investors
* Gen Z to take an active role in real estate market
* Trump as US president, Expo 2020 and affordable housing will be other drivers
Economic volatility and the unfolding of many regional and global events has impacted the real estate market in Dubai across 2016. But, despite all that, the emirate continues to be one of the first, potentially most lucrative destinations real estate investors think about.
As the world enters 2017 following a quite eventful 2016, many may wonder about the shape or form the market will take in the coming year.
PropertyTrader.ae, one of the leading online real estate portals in the UAE, takes a closer look at the emirate’s property market and identifies the following five trends that will shape it in 2017 and beyond.
Generation Z takes over
We’ve had just enough headlines about millennials. It is now time of Generation Z to take an active role in the real estate market, according to PropertyTrader.com.
Citing the National Association of Realtors in the United States, the real estate portal states Generation Z come with completely different needs and desires, consequently forcing new conditions onto the market.
“Generation Z came of age during global recession, war, terrorism and a stock-market collapse. So, what will they want? The answer is security in the form of home ownership.”
While millennials had been ditching home ownership and sticking to rentals to cater to their mobile life, “97 per cent of the Gen Z group wants to own a home as soon as they can,” the report said.
The report links the presidency of Donald Trump to the property market in Dubai by highlighting that statistics of US visitors to the site spiked only hours after Trump won the election.
“I think savvy developers and real estate brokers will capitalise on this more focused US interest and start marketing to them accordingly,” Umer Ali, Sales Director at propertytrader.ae, said.
Dubai Expo 2020
Dubai won the bid to host the World Expo2020, but the local property market is yet to feel the full benefit of the event. Most analysts predict 2017 will see the start of an upward trend, with the commencement of major infrastructure and real estate projects.
This is especially true for areas such as Dubai South and Al Furjan, close to the main venue of the global event.
The need for affordable housing has made several headlines over the past two years and developers are finally catching up. Several new projects have arrived, or are in the way, for that segment.
Confidence among developers
The first three quarters of 2016 have been considered “dry” in local property market, but the past month, alone, has seen master developers announce projects worth more than AED5 billion. This suggests developers have a high confidence in the market ability to absorb the supply, signalling the possible entrance of new investors.