DUBAI MARKET SUMMARY
Fadi Moussalli of Jones Lang LaSalle comments on the stabilisation of prices in Dubai’s commercial and residential real estate market.
In recent months, the spotlight has been on Dubai’s real estate market. After a couple of years of steady market recovery, rental value growth has stalled, and average prices in the residential and commercial sectors appear to have stabilised. Average rents and sales prices remained relatively flat and are set to witness passive growth levels due to: - A further increase in government charges in 2015, exerting significant influence on the cost of living with increasing housing and utility costs.
- The proposed 15% reduction in infrastructure spending for 2015, putting further pressure on the yearly budget for real estate.
- Oil price fluctuations.